Link Shares Jump 27% on Pacific Equity, Carlyle Group Takeover Proposal

Link Administration Holdings Ltd, an Australia-based provider of services in superannuation administration industry, said it has received a conditional A$2.76 billion proposal from a consortium comprising Pacific Equity Partners, Carlyle Group to acquire 100% of the stake, sending its shares up 27% to A$5.1 on Monday.

The non-binding offer of A$5.20 a share is at a 30.3% premium to the shareholder registry firm’s last closing price and has the support of Perpetual Ltd, which owns 9.7% of the company, Reuters reported.

The Link Group Board will consider the Proposal, including obtaining advice from its financial and legal 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 Consortium will result in any transaction, the company said.

Link Group has appointed Macquarie Capital and UBS as its financial advisers and Herbert Smith Freehills

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Yarra says Carlyle, PEP $3.8b tilt for Link too cheap

The Link board on Monday told shareholders to take no action after it received a “conditional, non-binding indicative proposal from a consortium comprising Pacific Equity Partners, Carlyle Group and their affiliates” through a scheme of arrangement proposal.

It also represents a back-to-the-future moment for PEP, which owned Link for a decade before floating it onto the ASX in 2015 at a share price of $6.37.

The $5.20 per share proposal gives an enterprise value of $3.8 billion to Link, when equity, debt and a pending acquisition of Irish group Pepper Servicing worth $266 million, which is still to be settled, are all taken into account.

Carlyle and PEP have secured a commitment from Link’s largest shareholder, Perpetual, to accept any offer of $5.20 a share or more.

Perpetual owns 9.65 per cent of the company. Carlyle and PEP said in a letter to Link’s chairman Michael Carapiet and independent director

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