- Link Group has signed a deal with Mitsubishi UFJ Trust & Banking Corporation
- Shareholders stand to receive $2.26 per share if the scheme is approved, marking a 32.9 per cent premium
- The agreement values Link Group equity at $1.2 billion, implying an enterprise value of $2.1 billion
- Link Group’s Board unanimously recommends shareholders vote in favour of the scheme
- LNK last traded at $2.16 at 11:00am AEDT
Fintech company Link Group (LNK) has entered into a scheme implementation deed with Mitsubishi UFJ Trust & Banking Corporation (The Trust Bank), a subsidiary of Mitsubishi UFJ Financial Group, Inc.
The Trust Bank is acquiring 100 per cent of Link Group’s shares through a scheme of arrangement.
If approved, Link Group shareholders are set to receive $2.10 cash per share under the scheme, along with an anticipated $0.16 cash dividend per share from Link Group, franked at around 25 per cent.
In total, this amounts to $2.26 per share, representing a substantial 32.9 per cent premium to the closing price on December 15, 2023. The transaction values Link Group equity at $1.2 billion and implies an enterprise value of $2.1 billion.
It is the latest deal in a series of M&As on the Australian listed company boards, with activity seeing an uptick in the final months of 2024.
Link board approval
The Link Group Board, in a unanimous decision, encourages shareholders to vote in favour of the scheme, emphasising its alignment with shareholder interests.
“The Board’s unanimous recommendation was based on a thorough evaluation of various factors, including Link Group’s intrinsic value under different scenarios and the potential medium-term share price without the Scheme,” Link Chair Michael Carapiet said.
“The Board believes that the proposed transaction will benefit both shareholders and stakeholders, and is in line with the Board’s priority to deliver shareholder value.”
Trust Bank Senior Managing Executive Officer, Takafumi Ihara, echoed Carapiet’s sentiments.
“We truly believe that the acquisition of Link Group will further enable MUFG to accelerate its global business expansion, with access to the Australian superannuation funds and global corporate clients to service with our broad range of MUFG’ solutions.”
Link Group shareholders will receive further information through a Scheme Booklet, with a Scheme Meeting expected in May 2024.
Pending approvals, the scheme is anticipated to be implemented in June 2024.
LNK last traded at $2.16 at 11:00am AEDT