Dye & Durham of Canada submitted a revised $4.30 per share proposal to Link last weekend. Link tested it with shareholders and rejected it in favor of the still-living offer (but for how long?) of $5.50 a share on Monday.
Thus, the buyer and the seller are now poles apart. It is understood there were talks between the pair and their advisers over the weekend, although they did not go into any depth.
Investors in Link believe the company is holding firm at $5 per share, or more, sticking to valuations made months ago.
Independent expert Deloitte valued the company between $4.81 and $5.97 per share in its May 10 report and using market multiples as of April 30. The ASX ALL Technology Index, of which Link is a member, has since fallen 16.5%.
Bond shares were at $3.76 in Monday morning trading, making it clear the market thinks the binding $5.50 per share deal is unlikely to be completed.
Investors estimate that Link has two weeks to try to negotiate a new agreement.
Interestingly, Link reminded shareholders that he still has the option to distribute his stake in PEXA, worth approximately $1.1 billion at current prices, “to maximize shareholder value.” which he was talking about last year when his talks with Pacific Equity Partners and The Carlyle Group fell apart.
Link is advised by Macquarie Capital, UBS and Herbert Smith Freehills. Dye & Durham has Barrenjoey in his corner.