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Link Holdings Rejects Takeover

Link Market Services is selling down on an overall green day in the market after the company released a takeover update.


This comes after an amended proposal from Dye & Durham last week which saw them suitor severely downgrade its takeover offer from $5.50 per share to $4.30 per share.


This was quoted to be due to, “…the current state of the financial markets, and the values of the shares of both Link and PEXA Group Ltd (ASX: PXA).”


According to the release, the Link board has carefully considered Dye & Durham’s proposal. This includes considering feedback from stakeholders, changes in share market valuations, and alternatives available to Link if the transaction does not proceed.


Despite the board not recommending the transaction, the company is continuing to engage with Dye & Durham. And if an undertaking is proposed by Dye & Durham to the ACCC which Link considers will mitigate the regulator’s concerns, it would be willing to consider a higher bid.


The release notes that if the scheme does not proceed, Link intends to evaluate alternatives for the business. One potential alternative is an in-specie distribution of a minimum of 80% of Link’s shareholding in PEXA.


Since the beginning of the year, the Link share price has lost over 30% of its value, despite the company receiving numerous takeover offers over the past few years.