Shares of Link Administration, an Australian financial technology company, experienced a significant surge following the announcement of a AU$1.2 billion buyout by a subsidiary of Mitsubishi UFJ Financial Group, a Japanese banking firm.
Impressive Market Response
On Monday, Link’s shares rose by 27%, reaching A$2.16, and even hitting a high of A$2.19 at one point. This positive market reaction underscores the favorable reception of the buyout news.
Unanimous Board Support
The board of Link Administration is unanimously backing the proposed buyout, perceiving it to be a favorable transaction for both shareholders and stakeholders. According to Link Chair Michael Carapiet, the board believes in the substantial benefits that this deal will bring.
The Details of the Deal
Under the terms of the agreement, Link shareholders will receive A$2.10 in cash for each share, along with an anticipated dividend of A$0.16 per share, which will be paid directly by the company. Consequently, this arrangement yields a total value of A$2.26 per share, resulting in a remarkable enterprise value of A$2.1 billion.
Mitsubishi UFJ’s Acquisition Plan
Link Administration is set to be acquired by Mitsubishi UFJ through a scheme of arrangement facilitated by its subsidiary, Mitsubishi UFJ Trust & Banking. The implementation of this scheme is expected in June 2024, subject to necessary approvals.
A Positive Year for Link
Link has experienced a rise of approximately 9.4% this year, further highlighting its strong performance and potential for growth.
