Link/Dye & Durham deal fails to proceed

fca/woodford/Link/dye-&-durham/

3 October 2022
| By Laura Dew |
image
image
expand image

The deal by Dye & Durham to acquire Link Group has collapsed after the UK regulator imposed conditions which were unmet.

Announcing its full-year results, Link said the deal had received strong shareholder support as well as approval from the Australian Competition and Consumer Commission (ACCC).

However, the approval of the UK regulator, the Financial Conduct Authority (FCA), depended on certain conditions being met. This was a result of an ongoing investigation regarding Link Fund Solutions’ promotion of the collapsed Woodford Income fund.

This included the requirement that Dye & Durham undertook to cover any shortfall in the value of assets of Link Fund Solutions, up to $519 million in relation to Woodford redress payments.

This, as well as conditions from the Luxembourg retailer, meant the scheme would not be proceeding.

Link said: “As a result, we were disappointed to inform shareholders that despite Link Group working diligently over an extended period and using its best efforts, the proposed Scheme with Dye & Durham involving Base Cash Consideration of $4.81 per Link Group share which Link Group shareholders approved in August would not be proceeding.

“As the Scheme is not proceeding, Link Group intends to evaluate alternatives for the business to maximise value for shareholders.”

Alternative routes included an in-specie distribution of a minimum of 80% of Link Group’s shareholding in PEXA, proceeding with the divestment of BCM, and conducting a strategic review of all aspects of its portfolio.

The firm would pay a fully-franked special dividend of eight cents per share in addition to its half-year dividend of three cents per share which was paid in April 2022, bringing the full year dividend to 11 cents per share.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND