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Australian fintech Link Group (ASX: LNK) has today received a $2.88 billion bid from a fund managed by US multinational private equity firm The Carlyle Group.
Under the proposal, Carlyle Asia Partners V, L.P. would buy each LNK share for $3 in cash plus a pro rata distribution of Link’s shareholding in conveyancing firm PEXA Group (ASX: PXA), valued on a lookthrough basis at $2.38 per LNK share as at 4 November.
Based on the above, the proposal values each Link share at $5.38, representing a 24.2 per cent premium to the last closing price.
The Link board says it will consider the proposal, including obtaining advice from Macquarie Capital and UBS as its financial advisers and Herbert Smith Freehills as its legal adviser.
The proposal is subject to a number of conditions including due diligence, negotiation, securing debt financing, final investment committee approval from relevant Carlyle committees and other regulatory approvals.
In light of the proposal, Link is suspending its on-market share buyback plan which has to date seen the company buy more than 23 million shares back from shareholders for $101.7 million.
This latest bid is Carlyle’s second attempt at buying Sydney-based LNK after approaching it late last year as part of a consortium with Pacific Equity Partners. The consortium withdrew that bid earlier this year.
Shares in LNK are up 11.09 per cent to $4.81 per share at 10.25am AEDT.
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