Link share

Dye & Durham cuts Link’s takeover bid to US$1.3bn after UK watch conditions

Australian-based Link Administration Holdings said on Monday that Canadian software company Dye & Durham (DND) had lowered its takeover bid, now valuing the share registry company at A$1.95 billion ($1.31 billion). US dollars), citing the UK financial watchdog’s terms for the takeover.

Australia’s competition regulator last week approved the A$2.47 billion takeover, ending a nine-month saga involving multiple bids for Link’s stake in online property settlement firm PEXA Group.

Earlier this month, the UK’s Financial Conduct Authority (FCA) said Link Fund Solutions, one of seven UK-regulated entities owned by Link which managed the defunct LF Woodford Equity Income Fund (WEIF ), could be forced to pay up to 306 million pounds in redress.

More than 300,000 investors suffered losses following the fund’s collapse in June 2019 due to liquidity issues, which the FCA investigated.

DND told Link in a September 18 letter that it could not agree to the FCA’s terms, which would cause the Sydney-based company to set aside arrangements to pay potential fines.

Link said he was unable to recommend the new proposal, under which shareholders will receive an initial cash payment of A$3.81 per share, which is A$1 less than the agreed offer. in July.

However, DND told Link in a letter that its shareholders would be entitled to an additional Australian dollar 1 per share in cash if the UK FCA found that LFSL was not liable for the remediation payments.