(Updates with details, background)
June 27 (Reuters) – Australia’s Link Administration said on Monday that Canadian cloud-based software company Dye & Durham Ltd had lowered its takeover offer by nearly a quarter to A$2.21 billion ( $1.54 billion), citing the low market value of the stock registration company.
Dye & Durham (D&D) has now offered Link A$4.30 in cash for each share, a 16.5% premium to the stock’s last close on Friday, but around 25% less than its previous proposal of $5.50 A piece made in December.
Shares of Link have fallen 23% since D&D made its first offer on December 22, losing around A$680 million in market value since then, while shares of PEXA Group Ltd have lost around 19%.
The new proposal comes days after Australia’s competition regulator raised concerns over D&D’s takeover bid, which would give the Canadian company access to the company’s prized 42.8% stake. Link in the PEXA electronic transfer group. The regulator is concerned that acquiring PEXA’s stake could impact rivals’ ability to compete.
Link said Monday that D&D was considering providing a commitment to the regulator to secure approval for the acquisition, but did not disclose what that would entail. He also said his board would consider the new offer.
Over the past two years, Link has received several takeover proposals, including global investment firms Carlyle Group and KKR & Co Inc, and a failed bid from a consortium including Carlyle, all vying for his stake in PEXA. . ($1 = AU$1.4391) (Reporting by Navya Mittal and Roushni Nair in Bengluru; Editing by Kim Coghill and Subhranshu Sahu)