On Friday, Link Group confirmed it had received a proposal from a syndicate led by Pepper European Servicing Limited (PES) to acquire its whole BCM business for up to $86.5 million.
The proposal is subject to a number of conditions including due diligence, obtaining antitrust and regulatory of change approvals.
The Link Group board confirmed it will consider the proposal.
Last week, global investment firm Carlyle submitted a proposal to acquire 100 per cent of Link Group’s shares, which VanEck deputy head of investments and capital market Jamie Hannah said represents a “large premium” at 24 per cent.
“However, Link has fallen 20 per cent since the start of the year and it is still well off its all-time high near $9. Whilst it’s a good deal for shareholders in the short term, the question arises whether it is in their best interest in the medium to long term,” Mr Hannah said.
“As a shareholder in Link, we would suggest the board review the offer, but remain focused on its expected growth targets. Link enjoys a reasonably strong balance sheet, and many brokers have a buy on the stock, so there’s an expectation of future price gains.”
The submission put forward by Carlyle comprises $3 per Link Group share plus a pro rata distribution of the fund administrator’s shareholding in PEXA Group to shareholders.
