Link becomes the latest takeover target with a $2.8bn bid from Carlyle
Link Administration Holdings (ASX:LNK) has become the latest company caught up in the takeover boom of 2021.
Link is arguably best known for its share registry and super fund administration services but also has a stake of over 40% in conveyancing platform Pexa (ASX:PXA).
Today it got an offer from Carlyle (NDQ:CG), a global investment fund with nearly US$300 billion in assets.
The takeover bid for Link is $5.38 per share ,of which $2.38 is for Link’s stake in Pexa and the balance for its other assets. It is a 24% premium to yesterday’s closing price.
While Link has not yet formally backed the bid it has agreed to consider the proposal and in the interim suspended its current share buyback scheme.
The company noted it would need regulatory approval and final investment committee approval from Carlyle.
This is not the first time Link has been a private equity takeover target in recent months.
Back in December it received a bid from investment management software company SS&C Technology.
The bid was withdrawn just a month later, and Link shares fell 11% on its first trading day of 2021.
At the time the board promised to consider all alternatives to maximise value for shareholders, and it followed through with the demerger of Pexa – which occurred in early July and at the time was the biggest of 2021.
Link also received an offer in April from a joint consortium of Carlyle and Pacific Equity Partners but this time Carlyle has gone at it alone.
This morning, Link shares rose by over 11% and Pexa shares recorded a slight nudge upwards too.
But Link shares are below the $6.37 per share price it was floated at back in 2015, and Pexa is also below water since listing too – by nearly 6%.