Jump to content



Recommended Posts

Linkâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s share price was affected by the Australian federal budget in May 2018, which included changes to rules that will hurt the company's superannuation business. However, this business constitutes around one third of group EBITDA, and we believe the market has overreacted to the changes, which we expect to reduce divisional EBITDA by around 10%. Also, we expect the Australian superannuation sector to increasingly depend upon Link's relatively low-cost administration services, and the likely consolidation of superannuation funds will benefit the company.


The impact of superannuation sector uncertainty has been amplified by Link's acquisition of U.K.-based Capita Asset Services in late 2017, which leveraged the balance sheet and created integration risk in the short to medium term. However, we believe the market is being overly cautious in this regard also, as Link bought CAS from a distressed seller, has expertise in the sector, and has an excellent record of integrating acquisitions. The CAS integration appears to be progressing well, and further good news in this regard is likely to be a catalyst to close the share price discount to our fair value estimate.


Link also owns a 20% stake in electronic conveyancing platform PEXA, which has a first-mover advantage and looks likely to build a network effect in the large Australian real estate conveyancing market. Although many of Link's businesses are likely to deliver only low-single-digit organic revenue growth, PEXA will add a strong top-line growth element to the stock, and we expect synergies from CAS and other previous acquisitions to boost EPS growth in the short to medium term. We believe Linkâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s low teens fiscal 2019 price/earnings ratio fails to reflect its earnings growth outlook and the quality of its highly experienced executive team.

Morningstar - Best stock ideas July
Link to comment
Share on other sites

  • 1 year later...

and Private Equity coming for Link.


Carlyle Group and Pacific Equity Partners have lobbed a $2.8 billion bid for Link Administration.


Perpetual, which owns 9.65 per cent, says it will support the $5.20 a share conditional and non binding indicative offer for the funds administration platform and 44.2 per cent owner of property setttlements platform PEXA.


Link to comment
Share on other sites

  • 2 months later...
  • 4 months later...

it has been a fast moving game; climaxed on the weekend

Link Administration has forced the hand of its two remaining suitors (who are really after the PEXA online conveyancing business) that the chase if off and PEXA will be floated on the ASX in a $3.3 billion issue.


KKR and Domain had given Link until 5pm Sunday to decide whether to accept the $3.1 billion proposal. Link called their bluff and put together the float, which also effectively ended the company's review of how to deal with PEXA – sell it to private equity, float it or keep it.


The news will see Link shares rise as punters climb into the stock in the belief there could be more bids emerging.


Link shares rose 5% on Friday to $5.45 in the wake of the late Thursday evening surprise announcement from KKR and Domain.


Link is PEXA's biggest shareholder with 44% and since US buyout group, KKR, and Nine Entertainment's real estate listing arm, Domain emerged late last week with a surprise $3.1 billion (including an unknown amount of debt and $136 million in cash), there have been hectic negotiations in Sydney-based lawyers and investment banks to put together a float commitment from big investors.


Saturday saw the funding sorted out and the $3.3 billion deal turned into a float proposal that will take up to a month to knock into shape and lodge for clearance.


Yesterday Link has told KKR and a second interested party, Canadian group Dye & Durham – that the trade sale process has ended.


PEXA's owners – Link, Morgan Stanley Infrastructure Partners and the Commonwealth Bank will now organise a prospectus for listing on the ASX by the end of that month.


The $3.3 billion valuation, and the $1.18 billion IPO raising, will make it the biggest float since 2019 by either measure.


Most of the $1.18 billion will go to Morgan Stanley Infrastructure Partners, which has agreed to sell its entire 40% stake. That will see Link increase its 44.2% holding slightly as it exchanges shareholder loans for more PEXA shares.


The Commonwealth Bank is also expected to acquire shares in the IPO process to lift its stake above 15.8%.


Around $200 million from the raising is expected to go to PEXA to finance its expansion offshore, once it has its local operations sorted out and in place.


Link shareholders though remain the beneficiaries because with the company still holding a big stake, it will remain a target for potential bidders.


That in turn makes the CBA stake of around 16% vital. Buying that and shares in the market would give a would-be-suitor a firm stake to launch a full bid for PEXA or to pressure Link.


Link's position will remain volatile until control of PEXA is sorted out once and for all.



A statement from Link to the ASX is expected before the market opens Monday morning at 10am

Link to comment
Share on other sites

  • 11 months later...
On 5/31/2021 at 12:58 PM, henrietta said:

And Link tanked today on the news ??


Link share price dropped on Wednesday to $4.22 and the stock is trading below book value and about 23 per cent below the $5.50 takeover price being offered by D&D.

When Canadian cloud computing comany Dye & Durham ( D&D) launched a $2.8 billion cash offer for Link in December, the Canadian software company had a market cap of $C3 billion ($3.3 billion) and an enterprise value of $C4 billion. It now has a market cap of $C1 billion, which is about the same as its debt.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...