Following the collapse of its previous takeover offer, Dye & Durham (D&D) has now launched a new proposal to acquire two of Link Group’s divisions for $1.27 billion.
In a statement to the ASX on Wednesday, Link confirmed that it had received a confidential, non-binding and indicative proposal to acquire both its corporate markets and banking and credit management (BCM) businesses.
D&D noted that its proposal, which provides that discussions should occur on an exclusive basis, “constitutes a non-binding indication of interest”.
As part of its statement, which was made in response to media speculation, Link disclosed that this is the third proposal it has received from D&D during the past week.
The Canadian firm last week offered to acquire Link’s corporate markets business for $950 million. It then offered $1.1 billion for the corporate markets business as well as parts of the BCM business other than those dealing with and holding non-performing loans on 2 October.
Link has made the decision not to engage with D&D on either of these two proposals, but the firm has indicated that the third proposal is currently under consideration.
“The Link Group board will consider Dye & Durham’s third proposal, including obtaining advice from its financial, legal and tax advisers, and will provide Link Group shareholders with an update during the next week,” it said.
D&D’s buyout of Link was officially called off late last month as precedent conditions of the takeover, including relating to the Woodford matters as well as approval from the UK’s Financial Conduct Authority (FCA), were yet to have been met.
Link Fund Solutions is currently facing a penalty of £50 million ($88 million) for its role in the collapse of the LF Woodford Equity Income Fund in addition to a redress payment of up to £306 million ($539 million) pay, which the FCA had expected D&D to commit to covering.
Earlier this week, Link announced that it will engage with applicable regulators in relation to a potential in specie distribution of a minimum of 80 per cent of the firm’s shareholding in PEXA.
Link said it has engaged with the ATO and will submit a ruling application to obtain tax roll-over relief for shareholders and itself under the demerger relief provisions.
