Aussie share registry darling, Link Administration Holdings has continued its struggle with its prospective Canadian off taker Dye & Durham.
Last Year, Dye & Durham launched a $2.9 billion takeover bid for Link, offering shareholders base consideration of $5.50 per share. Since then, there has been various regulatory and legal hurdles that the company has had to handle. After a shareholder vote, Link shareholders accepted a revised offer of $4.81 per share.
Dye & Durham provides mission-critical software for legal, financial, and business professionals. It’s listed on the Canadian stock exchange with a current market capitalisation of just over $1 billion.
As a result, Dye & Durham lined up a $3.5 billion loan from Goldman Sachs, JP Morgan, and Ares Capital. This spooked investors when the details became public in May, sending the Link share price reeling.
The primary regulatory hurdle was the the ACCC which stated concerns with Link’s over 40% stake in PEXA Group Ltd, stating:
“The proposed acquisition would align PEXA, a near monopoly provider of Electronic Lodgment Network services, with D&D, a significant supplier of software to lawyers and conveyancers, significantly increasing vertical integration in this industry.”
On top of this, Links also has another issue including to achieve approval, the United Kingdom Financial Conduct Authority (FCA) is asking Dye & Durham to put down $519 million towards redress payments relating to the now-collapsed Woodford Equity Income Fund.
In terms of the finalization of the deal, the CEO and board of directors have been spurred to attention as to the terms of the deal. Finally, Link has pushed back the second court hearing for the proposed transaction to 23 September.