The Supreme Court of NSW has made orders approving the proposed acquisition of Link Group by Mitsubishi UFJ Trust and Banking Corporation, a consolidated subsidiary of Mitsubishi UFJ Financial Group, by way of scheme of arrangement.
On Tuesday morning, Link confirmed its plans to lodge the court orders with the Australian Securities and Investments Commission (ASIC) on Wednesday, at which time the scheme will become legally effective.
Link will also request that the quotation of Link Group shares on the ASX be suspended from close of trading on Wednesday.
Subject to the scheme becoming effective, shareholders stand to receive $2.10 in cash and a 16-cent dividend per share.
The firm set its sights on approval from the NSW Supreme Court after 99.31 per cent of Link shareholders voted in favour of the move last week.
Outlining what the next steps of the transaction would involve, Link confirmed at the time that the scheme remained subject to the approval of the court at a hearing scheduled for 30 April 2024, among other outstanding conditions.
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 last week – 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.
