Link Group (ASX:LNK) - Managing Director, John McMurtrie
Managing Director, John McMurtrie
Source: IO&C
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • SS&C Technology Holdings has withdrawn its proposal to acquire Link Group (LNK)
  • The NASDAQ-listed company made the conditional, non-binding, indicative proposal to acquire all shares in Link Group in early December
  • The proposal offered $5.65 per LNK share and after reviewing it, the Link Group Board concluded the proposal did not offer compelling value
  • The board will continue to consider various changes to the company’s structure in a bid to simplify the business such as demerging its interest in Torrens Group Holdings
  • Shares have dropped 12.6 per cent and been trading at $4.85

NASDAQ-listed SS&C Technology Holdings has withdrawn its proposal to acquire IT service management company Link Group (LNK).

The global provider of investment and financial software and services made the conditional, non-binding indicative proposal to acquire all shares in Link Group in early December.

The proposal offered $5.65 per LNK share and was subject to a set of conditions including obtaining unanimous support for the Link Group Board. News of the proposal seemed to prompt a jump in the company’s share price from $4.96 on December 7 to $5.64 on December 8, 2020.

However, after reviewing the proposal, the board concluded it “did not offer compelling value” but did decide to provide further due diligence information on a non-exclusive basis.

The proposal from SS&C followed a revised proposal from private equity firms Carlyle Group and Pacific Equity Partners of $5.40 per share which was also considered not to offer compelling value.

Link Group will continue to explore what it describes as structural alternatives for its portfolio including a potential separation of its interest in Torrens Group Holdings.

This is in addition to the proposed demerger of Link Group’s 44.2 per cent interest in PEXA, a full-service Electronic Lodgement Network Operator, into a separately listed company.

Shares have dropped 12.6 per cent and been trading at $4.85 at 11:16 am AEDT.

LNK by the numbers
More From The Market Herald
Carsales (ASX:CAR) - Managing Director and CEO, Cameron McIntyre

" Carsales.com (ASX:CAR) raises $842m for Trader Interactive acquisition

Carsales.com (ASX:CAR) has raised $842 million from its institutional entitlement offer to help fund its acquisition…
The Market Herald Video

" Pilbara Minerals (ASX:PLS) set to increase production at Pilgangoora

Pilbara Minerals (ASX:PLS) is set to increase spodumene production at its Pilgangoora operation to 680,000 dry…
The Market Herald Video

" Liontown Resources (ASX:LTR) lands offtake agreement with Ford, reaches FID decision

Liontown Resources (ASX:LTR) has executed a binding offtake agreement and funding facility with global automaker, Ford.
The Market Herald Video

" Northern Star Resources (ASX:NST) looks to expand Kalgoorlie Super Pit

Gold miners Northern Star Resources (ASX:NST) flags potential to spend up to $1.4 billion to expand…