Salem Radio Network News Thursday, August 18, 2022

Science

Dye & Durham lowers Link Administration takeover offer by a quarter

(Reuters) – Australia’s Link Administration said on Monday Canadian cloud-based software company Dye & Durham Ltd lowered its takeover offer by nearly a quarter to A$2.21 billion ($1.54 billion) citing low market value of the share registry firm.

Dye & Durham (D&D) has now offered Link A$4.30 in cash for each share, a 16.5% premium to the stock’s last close on Friday but about 25% lower than its previous proposal of A$5.50 apiece made in December.

Link shares have tanked 23% since D&D made its first offer on Dec. 22, losing about A$680 million in market value since then, while shares of PEXA Group Ltd have lost about 19%.

The new proposal comes days after Australia’s competition regulator raised concerns about D&D’s takeover offer, which would give the Canadian firm access to Link’s prized 42.8% stake in electronic conveyancing group PEXA. The regulator fears the acquisition of PEXA stake would impact rivals’ ability to compete.

Link said on Monday D&D was considering providing an undertaking to the regulator to obtain approval for the acquisition, but did not disclose what it would entail. It also said its board would consider the fresh offer.

Over the past two years, Link has received multiple buyout proposals, namely from global investment firms Carlyle Group and KKR & Co Inc, and a failed bid by a consortium that included Carlyle, all vying to obtain its stake in PEXA.

($1 = 1.4391 Australian dollars)

(Reporting by Navya Mittal and Roushni Nair in Bengluru; Editing by Kim Coghill and Subhranshu Sahu)

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