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- Superannuation services provider Link Administration Holdings (LNK) has decided not to proceed with its acquisition of Pepper European Servicing
- The company exercised its right to terminate the share purchase agreement after the proposed transaction fell through
- Link will instead preserve its capital for other growth opportunities in the future
- The company’s trade sale of its interest in Property Exchange Australia is underway, with good indicative interest received to date
- Link Administration Holdings is up 1.67 per cent and trading at $4.86 per share
Superannuation services provider Link Administration Holdings (LNK) has decided not to proceed with its acquisition of Pepper European Servicing.
On January 30, 2020, the company announced that it had entered into a binding agreement with consumer finance company, Pepper Group. The agreement was for the acquisition of one of its subsidiaries, Pepper European Servicing (PES).
Under the share purchase agreement, completion of the proposed acquisition was subject to regulatory approvals and commercial conditions. The long stop date for these approvals and conditions to be satisfied by was 5:00 pm January 30, 2021 (UK time).
This long stop date passed without the proposed transaction taking place. As such, Link exercised its right to terminate the share purchase agreement.
In other news, the process for Link’s trade sale of its interest in Property Exchange Australia (PEXA) is underway. To date, the company has received good indicative interest in the sale of its shares and shareholder loans in PEXA.
As such, Link will make this sale a priority for the company. Link Group CEO and Managing Director Vivek Bhatia maintained that the company has strong foundations and will remain resilient in spite of recent developments.
“As a result of the termination of the PES transaction, we will preserve the capital for future growth opportunities,” he said.
“The Board is committed to maximising the value of its interest in PEXA for Link Groups’ shareholders. PEXA’s cash balance continues to strengthen month-on-month, highlighting the strong cash-flow conversion of this investment,” he added.
Link Administration Holdings closed 1.67 per cent up for $4.86 per share.
