Link investor

Link sells 10% of its stake in PEXA

Link Administration Holdings Limited has announced the sale of nearly 10% of its existing 42.77% stake in PEXA Group Limited.

Link Group intends to use the proceeds of the “PEXA Selldown” to repay the borrowings, which should reduce Link Group’s financing costs. The PEXA liquidation will continue at $13.50 per PEXA share.

Link announced on October 4, 2022 that it would engage with applicable regulatory authorities (such as the Australian Revenue Authority) with respect to a possible in-kind distribution of at least 80% of Link Group’s PEXA shares with its shareholders.

Shareholder approvals are expected in December 2022 and share distribution is expected to begin in January 2023.

Managing Director and Managing Director of Link Group, Vivek Bhatia, said: “We are proud of PEXA’s performance since our initial investment in 2011 and Link Group is pleased to have participated in its success as the first network operator electronic housing in Australia.

“The PEXA sale will provide Link Group with balance sheet flexibility in executing its strategic plan, and the proposed in-kind distribution of the remainder of Link Group’s PEXA shares will allow Link Group shareholders to continue to be exposed to an asset of quality which is expected to generate attractive cash flows with multiple growth levers.

Acquisition of Link Group by D&D approved by ACCC

Earlier this year, the Australian Competition and Consumer Commission (ACCC) announced that it would not oppose the proposed acquisition of Link Group by Dye & Durham Corporation (D&D).

Under a court-enforceable undertaking accepted by D&D, the company was obligated to sell its existing Australian operations to an ACCC-approved buyer.

Following the acquisition, D&D acquired the 42.77% interest in PEXA.

Prior to the acquisition approval, the ACCC cited significant competition concerns due to D&D’s vertical integration of its information brokerage, conveyancing and law firm management software services. with PEXA’s electronic housing network.

ACCC chairwoman Gina Cass-Gottlieb said at the time that the alignment between D&D and PEXA would have led to “a virtual monopoly” had it not been for the divestment of D&D’s Australian business.

“We were mindful of PEXA’s position as the only fully operational e-housing network and the sensitive period of transition underway as interoperability between e-housing network operators emerges,” said Cass-Gottlieb. .

[RELATED: ACCC approves D&D acquisition of Link]

Link sells 10% of its stake in PEXA

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Last update: November 18, 2022

Posted: November 21, 2022