On Friday, Link Group confirmed it had received a proposal from a syndicate led by Pepper European Servicing Limited (PES) to acquire its whole BCM business for up to $86.5 million.
The proposal is subject to a number of conditions including due diligence, obtaining antitrust and regulatory of change approvals.
The Link Group board confirmed it will consider the proposal.
Last week, global investment firm Carlyle submitted a proposal to acquire 100 per cent of Link Group's shares, which VanEck deputy head of investments and capital market Jamie Hannah said represents a "large premium" at 24 per cent.
"However, Link has fallen 20 per cent since the start of the year and it is still well off its all-time high near $9. Whilst it’s a good deal for shareholders in the short term, the question arises whether it is in their best interest in the medium to long term," Mr Hannah said.
“As a shareholder in Link, we would suggest the board review the offer, but remain focused on its expected growth targets. Link enjoys a reasonably strong balance sheet, and many brokers have a buy on the stock, so there’s an expectation of future price gains."
The submission put forward by Carlyle comprises $3 per Link Group share plus a pro rata distribution of the fund administrator’s shareholding in PEXA Group to shareholders.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
