The Link Administration Holdings Ltd (ASX: LNK) share price is edging higher on Monday.
In morning trade, the administration services companyâs shares are up 1% to $4.07.
Why is the Link share price rising today?
The Link share price is rising on Monday despite the release of an update on the Dye & Durham takeover approach.
Last week Dye & Durham sweetened its revised proposal by increasing it from $4.30 per share to $4.57 per share. However, this was still a long way from its original offer of $5.50 per share.
Upon receipt of the latest offer, Link revealed that it would consider Dye & Durhamâs revised offer, including obtaining advice from its advisers.
According to todayâs update, the Link board has decided that it is unable to recommend a $4.57 per share transaction.
It advised that this decision was based on factors such as feedback from a wide range of stakeholders, the range which the Independent Expert has determined to be the full underlying value of its shares, changes in market valuations of PEXA Group Ltd (ASX: PXA), and alternatives available to Link if a transaction with Dye & Durham does not proceed.
Link is continuing to engage with Dye & Durham. But if a deal is not reached, the company plans to evaluate alternatives for the business. This includes an in specie distribution of a minimum of 80% of Linkâs shareholding in PEXA, in order to maximise value for shareholders.
Earnings update and guidance
Offsetting this news and helping to boost the Link share price higher is news that the company expects to outperform its guidance in FY 2022.
The release reveals that the company is expecting to report revenue of $1,175 million, operating EBITDA of $250 million, and operating EBIT of $152 million in FY 2022. This is slightly ahead of guidance.
Looking ahead, in FY 2023 Link expects revenue to increase by a low single digit percentage, operating EBITDA is currently projected to be around 8-10% higher, and operating EBIT is currently projected to be around 10-12% higher.
The post Link share price higher amid takeover and guidance update appeared first on The Motley Fool Australia.
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More reading
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- Link share price jumps 7% on beefed up takeover bid
- Why Audio Pixels, Lake Resources, Link, and Magellan shares are dropping
- Link share price drops on takeover rejection
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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