LNK - Link Administration Holdings

[Ferret]

Carlyle sniffing around again.

 

[divs4ever]

Non-binding indicative proposal to acquire Link Group’s Banking and Credit Management business
Link Administration Holdings Limited (ASX: LNK) (Link Group) has received a conditional, nonbinding indicative proposal from a syndicate led by Pepper European Servicing Limited (not part of ASXPM) (PES) to acquire the whole of Link Group’s Banking and Credit Management (BCM) business (Proposal).
It is proposed that the syndicate acquire BCM for up to €55m (AU$86.5m) with PES acquiring the non-Irish businesses for €25m plus a deferred payment of €15m over three years on reaching certain targets, and the other member of the syndicate the Irish business for €15m. The Proposal is subject to a number of conditions, including:
• due diligence;
• obtaining anti-trust approvals;
• obtaining regulatory change of change approvals;
• negotiation and execution of transaction documentation; and
• securing debt financing. Link Group understands the Proposal would also require certain other approvals. The Link Group Board will consider the Proposal, including obtaining advice from its financial, legal and tax advisers.
Shareholders do not need to take any action in relation to the Proposal. It should be noted that there is no certainty that the discussions with the syndicate will result in any transaction. If there are material developments in the future, Link Group will inform shareholders as required under its continuous disclosure obligations. The release of this announcement was authorised by the Link Group Board. ENDS

Investor Relations Contact – Craig Curry, Link Group +61 403 747 901 Media Contact – Ben Wilson, GRACosway +61 407 966 083

DYOR

i hold LNK

 

[Dona Ferentes]

and a couple of views on Link:

James Marlay (Livewire Markets) : Link; buy, hold or sell?

Jun Bei Liu (Tribeca) (BUY): It’s a buy, I know it’s a little bit boring, but it is a buy because it’s still trading 15 per cent below the bid price. In the next couple of weeks, we expect to hear more from the bidder. If that doesn’t happen, the business is going to split out the PEXA stake and then they will use that to buy back its shares. It’s already got a buyback in place, but the other way is they can buy back more shares, for example.

J.B.L. Also, at the moment, it has another two private equity groups looking at some of its worst operating assets in Europe - they’re actually loss-making. They’re bidding a good price for those as well. Eventually, in the next 12 months, this company won’t be listed. So, there’s enough interest in there for you to make a good double-digit return.

James Gerrish (Money Matters) (HOLD): They’ve obviously had a couple of bids last year that walked away. There was complexity in those bids, given they held a large stake in PEXA, which has now been spun out and is newly listed, so it has simplified the rationale to buy Link. But again, it’s in neutral territory. It may happen, it may not. It’s a lukewarm hold for me, James.

 

[Ferret]

So some other mob have jumped in with an all cash offer for LNK of $5.53 to $5.68.

Maybe some chance of a bidding war. Good luck holders!

 

[divs4ever]

i would rather just hold LNK long term , but my faith in the board is waning rapidly , they seem to be very eager to get out of leadership ,

i wonder what the support would be for an EGM

 

[greggles]

Strange decline in the LNK share price today, down 13.08% to $4.32. Management has said it is not aware of any reason for the share price decline.

It is somewhat odd that the share price is trading at these levels when shareholders are expecting to receive $5.50 cash for their shares from Dye & Durham.

Hmmmm....

 

[DrBourse]

Strange decline in the LNK share price today, down 13.08% to $4.32. Management has said it is not aware of any reason for the share price decline.

It is somewhat odd that the share price is trading at these levels when shareholders are expecting to receive $5.50 cash for their shares from Dye & Durham.

Hmmmm....

View attachment 141470

I last looked at LNK Financials back on 3/2/22 – Analysis showed that of 29 various Ratios, 6 were Very Good, 4 were Good, 6 were average, 6 were BAD, 7 were VERY BAD.

Then we looked at LNK’s 21 Margin of Safety Figures, 9 were Good or VG, 7 were Bad or VB, 5 were somewhere in-between.

On 3/2/22 LNK’s Share Price(SP) was $5.43, their Intrinsic Value(IV) was only $4.36 – so LNK was pretty much Overpriced at that point.

And LNK’s IV & SP has been in decline for the past 5 years.

www.marketindex.com.au had calls of 1 Buy, 6 Hold & 5 Sells on 3/2/22.



Then when we looked at LNK’s TA – It has taken abt 5 mths for punters to realise that Gap Up on 22/12/21 was just a knee jerk reaction.

Also note that a few Large Shareholders ceased being Shareholders either side of 22/12/21.

Also it could be that holders got tired of waiting for a Predator to appear – Has anyone not wondered why some of the ‘Would Be Predators ‘just walked away’?? - Could it be that their Due Dilligence Tests FAILED.
Basic FA & TA show that LNK is not interesting enough for it 2B a T/O Target.

So, Now, LNK’s SP is probably where it should be- Low $4.00’s.

Not sure why punters are so surprised at the past 5 mths decline – it was always going to happen sooner or later.

 

[Garpal Gumnut]

I last looked at LNK Financials back on 3/2/22 – Analysis showed that of 29 various Ratios, 6 were Very Good, 4 were Good, 6 were average, 6 were BAD, 7 were VERY BAD.

Then we looked at LNK’s 21 Margin of Safety Figures, 9 were Good or VG, 7 were Bad or VB, 5 were somewhere in-between.

On 3/2/22 LNK’s Share Price(SP) was $5.43, their Intrinsic Value(IV) was only $4.36 – so LNK was pretty much Overpriced at that point.

And LNK’s IV & SP has been in decline for the past 5 years.

www.marketindex.com.au had calls of 1 Buy, 6 Hold & 5 Sells on 3/2/22.



Then when we looked at LNK’s TA – It has taken abt 5 mths for punters to realise that Gap Up on 22/12/21 was just a knee jerk reaction.

Also note that a few Large Shareholders ceased being Shareholders either side of 22/12/21.

Also it could be that holders got tired of waiting for a Predator to appear – Has anyone not wondered why some of the ‘Would Be Predators ‘just walked away’?? - Could it be that their Due Dilligence Tests FAILED.
Basic FA & TA show that LNK is not interesting enough for it 2B a T/O Target.

So, Now, LNK’s SP is probably where it should be- Low $4.00’s.

Not sure why punters are so surprised at the past 5 mths decline – it was always going to happen sooner or later.

View attachment 141506

And to summarise.

It is stuffed.

DDDYYYOOOOHRLOL

This advice from gg is specific in nature.

gg

 

[dyna]

Strange decline in the LNK share price today, down 13.08% to $4.32. Management has said it is not aware of any reason for the share price decline.

Looks like insiders knew this take over was probably going to fail.
Boy, why was ASIC not on to this?
ZZzzzzz !

 

[Garpal Gumnut]

Looks like insiders knew this take over was probably going to fail.
Boy, why was ASIC not on to this?
ZZzzzzz !

Didn't you know?

gg

BYO

 

[Ferret]

Looks like insiders knew this take over was probably going to fail.
Boy, why was ASIC not on to this?
ZZzzzzz !

Might be a bit harsh this time.

The fall coincides with yesterday's release of the scheme of arrangement booklet. The booklet noted the huge $2.9 billion consideration D&D are to pay and that they have a debt commitment letter from various institutions to borrow A$3.5B. The booklet notes failure of the funding arrangement as a risk to the scheme.

This is what has spooked the market. Is the fear rationally grounded? Who knows?

 

[divs4ever]

ACCC EXTENDS REVIEW OF PROPOSED ACQUISITION
The Australian Competition and Consumer Commission (ACCC) has advised that it has delayed the release of its
decision as to whether to provide notification it will not oppose the proposed acquisition of Link Administration Holdings
Limited (ASX: LNK) (Link Group) by Dye & Durham Corporation (D&D) or release a Statement of Issues (SOI) in
relation to the acquisition.
The ACCC has indicated it expects to update the parties on 16 June 2022.
The Link Group Board continues to unanimously recommend that Link Group Shareholders vote in favour of the
proposed acquisition, in the absence of a Superior Proposal and subject to the Independent Expert continuing to
conclude that the Scheme is fair and reasonable and in the best interest of Link Group Shareholders.
Link Group will continue to work closely with D&D to progress the competition approval process and all other regulatory
approvals required for implementation.
The release of this announcement was authorised by the Link Group Board.

i hold LNK

interesting that the ACCC hasn't just waved this through

 

[divs4ever]

Affirmation of FY22 guidance

Following elevated trading activity in shares of Link Administration Holdings Limited (ASX:LNK) (Link Group) on the ASX on 16 June 2022,
Link Group affirms its FY22 guidance provided on 24 February 2022 and in the Explanatory Booklet dated 10 May 2022. Revenue is expected to increase by a low single digit percentage and operating EBIT is expected to be at least 5% higher relative to FY21.

The release of this announcement was authorised by the Link Group Board.

i hold LNK

what a feeble attempt to stop the share price slide

 

[divs4ever]

UPDATE ON SCHEME WITH DYE & DURHAM
Link Administration Holdings Limited (ASX: LNK) (Link Group) provides the following update in relation to the proposed
acquisition of Link Group by Dye & Durham Corporation (Dye & Durham) by way of scheme of arrangement (Scheme),
pursuant to the Scheme Implementation Deed announced to the ASX on 22 December 2021 (Scheme Implementation
Deed).
Link Group has today received a letter from Dye & Durham stating that:
• Dye & Durham is considering providing an undertaking to the ACCC in order to obtain its approval as required
in the Scheme Implementation Deed;
• acknowledging this potential undertaking and the current state of the financial markets and values of both the
Link Group and the PEXA shares, Dye & Durham proposes that the current offer price under the Scheme
Implementation Deed be reduced to $4.30 per share (compared to the $5.50 per share within the Scheme
Implementation Deed);
• other than a reduction in the offer price, Dye & Durham is not prepared to make any further amendments or
alterations to the Scheme Implementation Deed and expects that the ACCC approval, based on the
contemplated undertaking, will satisfy one of the key outstanding conditions in the Scheme Implementation
Deed; and
• the proposal is subject to agreed documentation.
Consistent with the current Scheme Implementation Deed, if Dye & Durham reaches an agreement to sell the BCM
business, shareholders are entitled to receive any net consideration received from the sale of the BCM business up to
12 months after the implementation of the Scheme and up to 13 cents per Link share.
The Link Group Board will consider Dye & Durham’s request, including obtaining advice from its financial, legal and tax
advisers, and will provide Link Group shareholders with an update during the next week (including any updates to the
Scheme timetable previously announced and the timing of the Scheme Meeting and Special General Meeting currently
scheduled for 13 July 2022).
The release of this announcement was authorised by the Link Group Board.


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DYOR

i hold LNK

i was luke-warm on the original deal , will be definitely rejecting the reduced offer

i will happy if they just walk away ( and get a chance to add more cheap )

 

[divs4ever]

UPDATE ON SCHEME WITH DYE & DURHAM
Link Administration Holdings Limited (ASX: LNK) (Link Group) provides the following update in relation to the proposed
acquisition of Link Group by Dye & Durham Corporation (Dye & Durham) by way of scheme of arrangement (Scheme),
pursuant to the Scheme Implementation Deed announced to the ASX on 22 December 2021 (Scheme Implementation
Deed).
Further to Link Group’s announcement on 27 June 2022, with the assistance of its advisers, Link Group Board has
carefully considered the letter from Dye & Durham dated 27 June 2022 that stated, amongst other things, that:
• Dye & Durham is considering providing an undertaking to the ACCC in order to obtain its approval as required
in the Scheme Implementation Deed; and
• Dye & Durham proposed that the current Base Scheme Consideration under the Scheme Implementation Deed
be reduced to $4.30 per share (compared to the $5.50 per share within the Scheme Implementation Deed).
The Link Group Board has had regard to various factors, including:
• feedback received from a wide range of stakeholders;
• the range which the Independent Expert has determined to be the full underlying value of Link Group’s shares,
including potential adjustments to that range as a result of the change in market conditions;
• changes in market valuations of PEXA, Link Group and the broader market since the Scheme Implementation
Deed was signed; and
• alternatives available to Link Group if a transaction with Dye & Durham does not proceed.
Having regard to the above, the Link Group Board does not believe it is able to recommend a $4.30 per share
transaction for control of Link Group.
Link Group is continuing to engage with Dye & Durham in relation to whether an agreed position can be reached on the
matters raised in Dye & Durham’s letter.
If an undertaking is proposed by Dye & Durham to the ACCC which Link Group considers will satisfy the ACCC’s
concerns, the Link Group Board would be willing to consider an amendment to the agreed scheme consideration, with
consequential amendments to the Scheme Implementation Deed to document this.
In light of the above developments and to allow the parties additional time for discussions, Link Group will
postpone the Scheme Meeting and the Special General Meeting (the Meetings) from Wednesday, 13 July 2022
to a date to be determined.
Link Group will update the market as appropriate and inform Link Group Shareholders of the new date for the Meetings
as soon as possible. Link Group notes that the proxy deadline will be extended in line with the new date for the
Meetings. Link Group Shareholders who have already submitted a proxy will be entitled to revoke their proxy and lodge
a new proxy. Details regarding proxy instructions and any revocation of proxy votes will be issued once the date for the
Meetings is determined.
In the event the Scheme does not proceed, Link Group intends to evaluate alternatives for the business, including an in
specie distribution of a minimum of 80% of Link Group’s shareholding in PEXA, in order to maximise value for
shareholders.
2
Registered Office: Level 12, 680 George Street, Sydney NSW 2000, Australia
+61 2 8280 7100
www.linkgroup.com
The release of this announcement was authorised by the Link Group Board.


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DYOR

i hold LNK

 

[henrietta]

What a shambles of an organisation, yet they have some good assets. Glad my fairly long term holding is small.
Bought them for dividends, but got a lot more !!!!!!!!
Cheers
J

 

[JohnDe]

What a shambles of an organisation, yet they have some good assets. Glad my fairly long term holding is small.
Bought them for dividends, but got a lot more !!!!!!!!
Cheers
J

Same, and I had planned to keep them for many years. I got tired of their shenanigans and sold after 18 months, for a small profit.

 

[divs4ever]

indeed for a company that specializes in financial administration , you make a very valid point

MQG and PPT are still hungry would they reach for the calculator

 

[divs4ever]

Same, and I had planned to keep them for many years. I got tired of their shenanigans and sold after 18 months, for a small profit.

i am CONSIDERING adding more if this dips lower ( but not today )

 

[divs4ever]

MEDIA UPDATE
7 July 2022
Clarification on ACCC’s merger review of Dye & Durham's proposed
acquisition of Link
The ACCC has become aware of a media report that states that Dye & Durham’s (D&D)
proposed acquisition of Link Administration Holdings (ASX:LNK) requires approval from the
ACCC which it has agreed to provide by 22 September 2022.
The ACCC has not agreed to provide ‘approval’ or any decision by 22 September as
reported.
The ACCC has not reached a view on Dye & Durham’s request for informal merger
clearance for its proposed purchase of Link.
The ACCC has invited submissions on its Statement of Issues by Thursday, 7 July 2022.
The ACCC’s final decision is currently scheduled for 8 September 2022. Any changes to the
indicative timeline will be published on the ACCC’s public register: Dye & Durham
Corporation - Link Administration Holdings

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DYOR

i hold LNK