Acquisition of Link Group progresses
Link Administration Holdings has given access to Carlyle Asia Partners to its dataroom and its executive leadership and has received another unsolicited proposal from a European firm to acquire its banking and credit management business.
As part of Carlyle’s proposal to acquire 100% of Link Group shares, it received access to Link’s virtual dataroom and a question and answer process. Carlyle had also been given access to its executive leadership team.
This followed Link having commenced its due diligence for the non-binding proposal on 15 November.
In an announcement to the Australian Securities Exchange (ASX), Link also noted it had received a further unsolicited proposal from LC Financial Holdings to acquire Link Group’s banking and credit management business.
The European purchaser and services of full lifecycle receivables proposed to acquire the business for up to €65 million ($101.2 million), with an upfront payment of €50 million plus a deferred payment of €15 million payable when certain targets were achieved over a period of time.
Link said its board had granted LC Financial Holdings due diligence and would consider the proposal.
This proposal was in addition to an acquisition offer by Pepper European Servicing Limited to acquire its banking and credit management business.
The announcement also noted it was engaging with regulators, including the Australian Taxation Office, in relation to a potential in-specie distribution of a minimum of 80% Link Group’s shareholding in PEXA. Link said it would seek a ruling to obtain tax rollover relief for shareholders under the demerger relief provisions.
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