The share price of ASX-listed asset manager Link Administration Holdings Limited (AU:LNK) surged by 27% today following a takeover offer from Japan-based Mitsubishi UFJ Financial Group. The proposal assesses the company’s equity at AU$1.2 billion and the overall enterprise value at AU$2.1 billion.
Link Administration caters to the superannuation administration industry in Australia.
Investors Frenzy After the Lucrative Offer
The acquisition will be carried out through a scheme implementation deal, under which Mitsubishi UFJ Trust & Banking Corporation will take 100% ownership of Link’s shares. As part of the deal, Link’s shareholders will receive AU$2.10 in cash in addition to a dividend of AU$0.16 per share to be paid by the company. The offer price reflects a premium of 23.5% on Friday’s closing price.
Investors reacted positively after the company accepted the offer, considering the shares traded down by around 35% over the last 12 months. The company believes the offer provides shareholders with a chance to receive cash at a good premium. The company’s board has urged its shareholders to vote in favour of the deal. Link shares might soon be delisted from the ASX.
The takeover will help Mitsubishi expand its global footprint by securing access to Australian funds and global corporate clients. The acquisition of shares is anticipated to commence in June 2024. The deal is contingent upon approvals from shareholders, the court, and regulatory authorities.
Link Administration Share Price Target
According to TipRanks consensus, LNK stock has received a Moderate Buy rating based on one Buy and two Hold recommendations. The share price target is AU$1.40, which is 35.5% below the current trading price.
