Why is the Link (ASX:LNK) share price frozen on Wednesday?

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt

The Link Administration Holdings Ltd (ASX: LNK) share price has been put in the freezer this morning as the company prepares to announce potentially exciting news.

The company has provided one clue to the market; the upcoming announcement relates to “a proposal for a potential control transaction”.

Right now, the Link share price is halted at its previous close of $4.79.

Let’s take a look at what the fund administration services provider has been up to lately.

The Link share price has been halted and might stay that way until tomorrow.

That is, unless the company releases its much-anticipated news today or extends its trading halt.

The market’s unaccustomed to seeing the Link share price halted. The last time it was frozen was in December 2020, before the company announced it had received its second takeover proposal in as many months.

Interestingly, Link is once more the subject of simultaneous takeover offers. Though, this time it has three to choose from.

Investment fund Carlyle Asia Partners put forward a $5.38 per share bid for the company in early November.

Carlyle was given access to Link’s virtual dataroom, Q&A process, and its executive leadership team later that month.

Days after the first takeover offer was posed, Link received an offer to sell its banking and credit management business to a syndicate led by Pepper European Servicing Limited.

The syndicate was granted exclusive due diligence for the banking and credit management business until 17 December.

The company has since received another offer for its banking and credit management business from LC Financial Holdings.

The latest offer would see Link receive approximately $102 million (at today’s AUD/Euro exchange rate) for the business. LC Financial Holdings has also been granted due diligence.

Since Carlyle posted its most recent takeover offer, the Link share price has gained 10%. Though, it is still 0.2% lower than it was at the start of 2021.

It likely goes without saying that plenty of eyes will be on the stock over the course of today in wait of more news.

The post Why is the Link (ASX:LNK) share price frozen on Wednesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Link Administration Holdings Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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