The Link Administration Holdings Ltd (ASX: LNK) share price is racing higher on Wednesday.
In morning trade, the administration services company’s shares are up 7% to $3.12.
Why is the Link share price racing higher?
The Link share price is on the rise today after the company responded to speculation that it has received another proposal from Dye & Durham.
According to the release, on this occasion, Dye & Durham wasn’t targeting the whole business. Instead, it has set its sights on the Corporate Markets business and parts of the BCM business.
The suitor made a confidential non-binding, conditional, and indicative proposal of $1.1 billion in cash and on a cash and debt free basis. This follows a proposal from Dye & Durham last week to acquire Link’s Corporate Markets business for A$950 million.
The release explains that the proposal was subject to due diligence, negotiation of transaction documentation, and regulatory approvals. However, unfortunately for Dye & Durham, Link wasn’t biting with this proposal or the previous one and rejected them both.
Another new offer
This morning, Dye & Durham returned the table yet again with an improved offer, which remains under consideration.
A further confidential non-binding, conditional and indicative proposal has been made to acquire Link’s Corporate Markets business and all of the BCM business for total cash consideration of $1.27 billion on a cash and debt free basis.
The Link board advised that it will consider Dye & Durham’s third proposal, including obtaining advice from its financial, legal and tax advisers, and will provide shareholders with an update during the next week.
Third time lucky for Dye & Durham? Time will tell.
The post Link share price jumps 7% on new buyout offer appeared first on The Motley Fool Australia.
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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.
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