Citi suspects the market is sceptical about the chances of the proposal from Carlyle succeeding, given two prior bids have failed. The latest bid is at $3 cash and a pro rata distribution of the Link Administration holding in PEXA Group ((PXA)).
To account for some likelihood the bid may be successful Citi lifts its target to $5.00 from $4.75 and retains a Neutral rating.
The bid now values Link at $5.30 or a 22% premium, given the fall in the PEXA share price, and the broker warns the valuation of the bid will move around with changes in the PEXA value.
Sector: Software & Services.
Target price is $5.00.Current Price is $4.59. Difference: $0.41 – (brackets indicate current price is over target). If LNK meets the Citi target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
