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Link Administration (ASX:LNK) receives BCM takeover offer

ASX 200, ASX News
ASX:LNK      MCAP $1.161B
12 November 2021 13:52 (AEST)
Link Administration (ASX:LNK) - Managing Director & CEO, Vivek Bhatia

Source: Link Administration

Link Administration (LNK) has received another takeover bid, this time for its Banking and Credit Management (BCM) business.

A syndicate led by Pepper European Servicing (PES) has offered to buy Link’s BCM for €55 million (A$86.5 million) in a conditional, non-binding indicative proposal.

The syndicate also wants to acquire LNK’s non-Irish businesses for up to €40 million (A$62.9 million) and its Irish company for €15 million (A$23.6 million).

Pepper’s offer comes after Link previously offered to buy PES in full, before pulling out of the deal in early 2020.

Meanwhile, today’s offer comes days after investment firm Carlyle Group again offered to acquire the superannuation and banking business for roughly $2.8 billion.

Carlyle and Pacific Partners previously put forward a failed bid to buy LNK in 2020, with Link also receiving a $3 billion takeover offer from SS&C.

It rejected both offers but is considering the latest takeover offer from Carlyle.

In regards to this latest offer from the PES-led syndicate, Link said it would consider the proposal and receive advise from its legal, financial and tax advisors.

LNK shareholders don’t need to take any action regarding this latest offer, with the finance business promising to keep investors informed of any material updates.

Shares in Link Administration are trading up 3.47 per cent at $4.77 per share at 1:35 pm AEDT on Friday, November 12.

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