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Link shareholders back $1.2bn takeover

By Jessica Penny
3 minute read

The firm has set its sights on approval from the NSW Supreme Court after shareholders have given the green light on its proposed acquisition.

Link Group shareholders have voted in favour of its acquisition by Mitsubishi UFJ Trust & Banking Corporation, a consolidated subsidiary of Mitsubishi UFJ Financial Group, by way of scheme of arrangement.

On Wednesday, it was revealed that 99.31 per cent of the votes cast by shareholders earlier in the day were in favour of the scheme.

Outlining what the next steps of the transaction will involve, Link confirmed that the scheme remains subject to the approval of the Supreme Court of NSW at a hearing scheduled for 30 April 2024, among other outstanding conditions.


If the scheme is approved, Link shareholders stand to receive $2.10 in cash and a 16-cent dividend per share.

In December, Link suggested that the offer represents a “significant premium” of 32.9 per cent on its closing price as at 15 December 2023 and values the firm’s equity at $1.2 billion with an enterprise value of $2.1 billion.

Link Group board chairman Michael Carapiet told shareholders on Wednesday – prior to the vote – that while the board “acknowledges the reasons to vote against the scheme”, it believes the advantages outweigh the disadvantages.

“At the time of this scheme meeting, no superior proposal has emerged, nor are they aware of any superior proposal likely to emerge,” Carapiet said.

“The Link Group directors unanimously recommend that you vote in favour of the scheme.”

The trust bank, as a subsidiary of MUFG, provides retail banking, commercial banking, asset management and administration, real estate and stock transfer agency services.

With total assets of 37.9 trillion yen as of 30 September 2023, it is one of Japan’s largest trust banks.

Canadian firm Dye & Durham previously pursued a takeover of Link beginning in December 2021 before the two firms ended their discussions a year later.

Commenting on the trust bank’s takeover bid, Peter Worn, joint managing director of global technology services business Finura Group, has said the MUFG subsidiary’s $1.2 billion all-cash deal is “notably less” than the offer made by Dye & Durham.

“Valued only at 8.5 times earnings, this deal highlights the importance of having a robust business model (actual SaaS revenue) for technology companies that support the burgeoning superannuation industry,” he wrote on LinkedIn in December.

“A rapidly consolidating superannuation sector makes technology services a game of musical chairs. We expect alternative bids to come in.”