Dye & Durham’s $4.57 a share revised offer for Link Administration Holdings doesn’t keep pace with the increase in PEXA’s share price, according to JPMorgan’s sell-side research.
The bidder’s also said it would pay up to 13¢ per share per Link share from the proceeds of selling Link’s banking and credit management division.
JPMorgan reckons while Link faced headwinds in earnings risk versus the guidance for the 2022 financial year and the risk from its UK regulator review of windup of Woodford funds, it still thought they were offset by its buyback, corporate appeal and apparent cheapness of the stock. “We have a Dec-22 PT of $4.80 reflecting our SOTP [sum of the parts] valuation without any takeover premium of $4.60 plus a small takeover premium, given the material interest from several parties, including DyeDurham, which has received LNK Board approval, and other interest from parties, including Carlyle and FNZ,” the note said.
co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies.
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