The parent company of PEXA has confirmed that the property settlements platform is expected to list on the ASX in late June, after turning down suitors in favour of a $3.3 billion IPO.
In afternoon trade, the administration services company’s shares are down 6% to $4.96.
Why is the Link share price sinking?
Investors have been selling Link’s shares following the release of an update on its takeover approach by a consortium comprising Pacific Equity Partners, Carlyle Group and their affiliates.
Last year the consortium made a non-binding indicative proposal to acquire the company for a cash price of $5.40 per share.
SS&C Technology then came to the table in December, outbidding the consortium with a conditional, non-binding indicative proposal of $5.65 cash per share.
However, after providing SS&C Technology with due diligence, it soon withdrew its offer.
(Recasts and adds CEO comment on briefing call)
SYDNEY, Feb 1 (Reuters) - Australia’s Link Administration Holdings Ltd on Monday said it would prioritise a trade sale for its coveted stake in online conveyancing firm PEXA within months, instead of a demerger as it looks to capitalise on a property market rebound.
The strength of the housing market had influenced the decision to sell the stake outright instead of distributing PEXA shares to Link investors, the company said, even though it would mean paying capital gain taxes of about 30% on a deal.
Late last year, attracted by its 44.2% stake in PEXA - the dominant digital property transfer business in real-estate-obsessed Australia - at least two groups tabled unsuccessful bids for Sydney-based shareholder registry firm Link.
The
S&P/ASX 200 Index (ASX: XJO) has started 2021 in style and stormed notably higher last week. The benchmark index rose a sizeable 2.6% to end the five days at 6,757.9 points.
Unfortunately, not all shares on the index climbed higher with the market. Here’s why these ASX 200 shares were the worst performers last week:
The Link share price was the worst performer on the ASX 200 last week by some distance with a 16.2% decline. Investors sold off the administration services company’s shares after its released an update on a takeover approach by SS&C Technology Holdings. Last month the NASDAQ listed global provider of investment and financial software made a conditional offer of $5.65 per share to acquire 100% of Link. While management felt the offer undervalued the company, it granted SS&C Technology due diligence. However, last week it revealed that the takeover proposal has now been withdrawn.
Last week the
S&P/ASX 200 Index (ASX: XJO) fought hard and was able to extend its winning streak to six consecutive weeks. The benchmark index rose 0.1% to finish the period at 6,642.6 points.
While a number of shares climbed higher with the market, some recorded stronger gains than others.
Here’s why these were the best performers on the ASX 200 over the period:
The IGO share price was the best performer on the index last week with a 24.2% gain. Investors were buying this nickel producer’s shares after it completed its institutional placement and entitlement offer. IGO raised a total of $707 million at a 9.7% discount of $4.60 in order to expand into the lithium market. The company has signed an agreement to acquire a 49% stake in Tianqi Lithium Energy Australia from China-listed Tianqi Lithium Corporation.