Link share price jumps 10% on takeover deal

a close up of two people shake hands in front of the backdrop of a setting sun in an outdoor setting.

a close up of two people shake hands in front of the backdrop of a setting sun in an outdoor setting.

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

In morning trade, the administration services company’s shares are up 10% to $4.36.

Why is the Link share price surging higher?

Investors have been scrambling to get hold of Link shares this morning after the company provided another update on its takeover saga.

But as you might have guessed from the Link share price reaction, this update is potentially a good one for shareholders.

According to the release, Dye & Durham has revised its base scheme consideration to $4.81 per share. While this is lower than the original base scheme 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 remain entitled 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 implementation of the revised scheme.

Dye & Durham has advised that it will shortly appoint financial advisers to sell Link BCM business and will commence this process immediately following implementation of the revised scheme.

Offer recommended

The Link board is unanimously recommending that shareholders vote in favour of the revised scheme in the absence of a superior proposal and subject to the independent expert concluding that it is fair, reasonable, and in the best interests of shareholders.

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

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

The post Link share price jumps 10% on takeover deal appeared first on The Motley Fool Australia.

Should you invest $1,000 in Link Administration Holdings Ltd right now?

Before you consider Link Administration Holdings Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Link Administration Holdings Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/rKkYgae

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s