Are we reaching endgame for the off/on battle for control of Link Group with a third suitor emerging?
Investors bid the shares up more than 14% to $5.66 yesterday after American financial services group, SS&C Holding revealed an indicative $3 billion indicative bid for the superannuation fund administrator Link. The shares closed up nearly 14% at $5.64.
The offer from SS&C Holding, at $5.65 a share, is higher than the $5.40 a share bid put forward by private equity suitors – Pacific Equity Partners (PEP) and The Carlyle Group – which was tossed by Link six weeks ago.
Link’s board has labelled the $5.40 a share offer from inadequate but at the time left room for the private equity consortium return with another offer, by giving it access to its books on a non-exclusive basis.
PEP and Carlyle can still win if they offer a higher price with a large enough premium to the $5.65 mooted price. The way is open for them to make a knockout offer.
The non-binding proposal from SS&C Holding comes with six conditions, including unanimous board approval and the ability to obtain necessary debt financing, according to a statement filed with the ASX on Monday evening after trading had ended.
“The Link Group board will consider the SS&C proposal, including obtaining advice from its financial and legal advisers,” Link said in the statement. “ shareholders do not need to take any action.”
Link told shareholders, well after trading had closed for the day, there was no certainty the discussions would result in a deal ahead of the group’s investor day on today.
SS&C would need to obtain approval from the federal government’s foreign investment review board and Australian Competition and Consumer Commission in the event of any transaction.
Connecticut-based SS&C sells software and software-as-a-service (SaaS) to the financial services industry. The company was involved in a tussle with UK-based FNZ for ASX-listed financial software maker GBST Holdings last year. SS&C were unsuccessful.
