The Link Administration Holdings Ltd
(ASX: LNK) share price is up another 13% after a takeover offer.
Link is a financial services business that helps shareholders and investors connect with their assets including shares, pension, superannuation, property and other financial assets.
The latest takeover offer
The Link share price rocketed 25% a couple of months ago after it received a takeover offer from Pacific Equity Partners, Carlyle Group and their affiliates.
This time Link has received a conditional, non-binding indicative offer from SS&C Technology Holdings to buy 100% of Link.
SS&C is a NASDAQ listed global provider of investment and financial software-enabled services and software for the financial services and healthcare industries. It has 150 offices in 35 countries.
The cash price being offered by SS&C is $5.65. The 13% increase in the share price has been to $5.61. That may suggest investors think there will be other bids for Link.
However, there are a number of conditions with this bid including confirmatory due diligence, obtaining debt financing, negotiation and execution of transaction documentation, regulatory approvals, a unanimous recommendation by the Link board and deal protection terms.
The Link board said that it will consider the SS&C proposal, including getting advice from its financial and legal advisers. Shareholders were told they don’t need to take any action and Link will give an update if anything happens.
What to do?
When more than one party gets involved, it makes it much more likely that a takeover will go ahead. A bidding war is a good thing for people who are still shareholders. It’s hard to say how high the bids will go.
Link has been going through difficulties in recent times, particularly because of impacts after the Royal Commission that said that people had too many superannuation accounts with limited funds in them.
I’d personally rather take the money and run, and put it into something else. Two of my favourite ASX share ideas at the moment are Pushpay Holdings Ltd (ASX: PPH) and Brickworks Limited (ASX: BKW).
