Link Administration has called off the 165-million-euro ($A262 million) deal announced last year to acquire Pepper’s European financial services business.
Almost exactly one year ago, Link announced it would acquire Pepper European Servicing (PES) to expand its banking and credit management services.
Shareholders were told at the time that PES was “strategically aligned” to Link’s growth initiatives and would capture opportunities in emerging markets, with customers across Spain, Greece and Cyprus.
PES is based in London and is part of the global credit provider Pepper Group that provides end-to-end loan servicing, advisory and asset management services in Europe.
But on Monday, Link said the deal was subject to regulatory approvals and commercial conditions with the deadline for these to be satisfied January 30, 2021.
“As the long stop date has passed without a transaction being completed, Link Group has exercised its right to terminate the SPA and not to proceed with the acquisition,” Link said.
Link will now focus on selling its lucrative property settlements platform, PEXA, in what chief executive Vivek Bhatia said was part of the company’s strategy to simplify the business.
“As a result of the termination of the PES transaction, we will preserve the capital for future growth opportunities.”
Link’s future remains clouded. A would-be US bidder walked away last month (it bid $3.9 billion in one of those non-committal offers) and a pair of private equity groups, Carlyle and Pacific Equity are lurking with intent after their initial $2.9 billion offer was rejected.
Link has rejected both (it’s all about trying to grab the 44% of PEXA that Link controls).
Link shares rose 1.6% to $4.86. Link shares dropped 14% in January after US bidder, SS&C walked away from its offer without an explanation.
