Link share

Link’s share price jumps 10% on takeover deal

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The Link Administration Holdings Ltd (ASX:LNK) The stock price is having a strong day on Thursday.

In morning trading, shares of the administrative services company rose 10% to $4.36.

Why is Link’s stock price skyrocketing?

Investors scrambled to get their hands on Link shares this morning after the company provided another update on its takeover saga.

But as you might have guessed from Link’s stock price reaction, this update is potentially good for shareholders.

According to the release, Dye & Durham revised its base plan consideration to $4.81 per share. While this amount is lower than the Base Plan’s initial consideration of $5.50 per share, it is higher than its recently revised offers of $4.30 per share and $4.57 per share.

In addition, Link shareholders retain the right to receive net consideration of up to 13 cents per share from the sale of the Banking and Credit Management (BCM) business. This is if the business is sold and proceeds are received up to 12 months after the revised scheme is implemented.

Dye & Durham has announced that it will appoint financial advisers to sell the Link BCM business shortly and will begin this process immediately after the revised program is implemented.

Recommended offer

Link’s board of directors unanimously recommends that shareholders vote in favor of the revised plan in the absence of a superior proposal and subject to the independent expert concluding that it is fair, reasonable and in the best interest of shareholders.

Subject to the same qualifications, each director of Link intends to vote in favor of the revised scheme at the next scheme meeting.

However, the deal will still require approval from courts, regulators and other customary conditions.