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Link Group (ASX:LNK) - Managing Director, John McMurtrie
Managing Director, John McMurtrie
Source: IO&C
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  • Link Administration (LNK) is soaring this morning after receiving a $2.76 billion takeover bid from private equity firms Carlyle Group and Pacific Equity Partners
  • The potential buyers have lobbed an offer of $5.20 per share for full control of Link — a discount of over 30 per cent to the company’s last closing price
  • One of Link’s major shareholders, Perpetual, has told the private equity groups it plans to vote in favour of the deal
  • Perpetual holds a 9.65 per cent interest in Link
  • Link said it will consider the deal but has asked shareholders to take no action yet
  • Shares in Link are trading almost 25 per cent higher this morning and currently worth $4.98 each

Shares in Link Administration (LNK) are soaring this morning after the company received a $2.76 billion takeover bid from private equity firms Carlyle Group and Pacific Equity Partners.

The potential buyers have lobbed an offer of $5.20 per share for full control of Link — a neat 30.33 per cent premium to the financial market services company’s last closing price.

The offer is non-binding, but Link said major shareholder Perpetual has shown support for the deal. Perpetual, which holds a 9.65 per cent interest in Link, sent the private equity firms a letter saying that it plans to vote in favour of the takeover when the time comes.

The Link Board, however, seems a bit more cautious. The company said it will consider the offer but has asked shareholders to take no action in the mean time.

“It should be noted that there is no certainty that the discussions with the consortium will result in any transaction,” the company stressed.

Of course, from Carlyle and Pacific Equity’s side, their offer is subject to due diligence, final investment committee approval, and certain regulatory approvals such as a green light from the Foreign Investment Review Board (FIRB).

Link partners with financial markets to help connect people to their equities, super funds, and other financial assets through call centre and admin services.

Shares in Link are surging towards the takeover price, currently up 24.56 per cent and worth $4.98 each. The company has a $2.65 billion market cap.

LNK by the numbers
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