The Link Administration Holdings Ltd (ASX: LNK) share price is sinking again on Wednesday.
At the time of writing, the administration services companyâs shares are down 5% to $3.28.
This latest decline means the Link share price is now down over 40% since the start of the year.
Why is the Link share price sinking?
Investors have been selling down the Link share price today after the company provided an update on the Woodford investigation.
Link is the owner of Link Fund Solutions Limited (LFSL), which managed the now-collapsed Woodford Equity Income Fund.
According to todayâs update, the UK Financial Conduct Authority (FCA) has issued a draft warning notice in accordance with the settlement decision procedure to LFSL in respect of the Woodford Investigation.
The FCA has assessed the appropriate penalty as 50 million pounds (A$85 million) plus a restitution payment of approximately 306.1 million pounds (A$520 million).
What impact will this have on its takeover?
Things don’t look good for Link’s takeover. While the draft notice is not a final decision, Link notes that it triggers the Woodford Matters condition under the scheme implementation deed with Dye & Durham.
Earlier this week, Dye & Durham amended its takeover offer to be $3.81 per share plus a contingent payment.
However, if this draft notice becomes definitive, there will be no contingent payment. Furthermore, the penalty of 50 million pounds was not accounted for previously and could also impact the offer price. Thatâs if Dye & Durham doesnât just walk away from talks.
The Link board has already said it would be unable to recommend a $3.81 per share offer. So, it appears highly unlikely that Dye & Durham will return with an improved offer that could be recommended given this news.
This goes some way to explaining why the Link share price is trading at such low levels today.
The post Link share price sinks again amid takeover doubts appeared first on The Motley Fool Australia.
Should you invest $1,000 in Link Administration Holdings Limited right now?
Before you consider Link Administration Holdings Limited, 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 Limited wasn’t one of them.
The online investing service heâs 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 September 1 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
- Why Clinuvel, EML, Infomedia, and Link shares are dropping today
- Link share price down 4% with takeover close to hitting the rocks
- Link share price dips despite Foreign Investment takeover nod
- Why Grange, Link, Ramsay, and Whitehaven Coal shares are dropping
- Why is the Link share price crashing 20%?
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/w3HtmqG
Leave a Reply