Link Group is the target of an acquisition bid by Mitsubishi UFJ Trust and Banking Corporation as the firm seeks greater access to Australia’s superannuation funds.
Mitsubishi UFJ said the deal to acquire 100 per cent of Link will help it support greater access to Australian superannuation funds and strengthen its global reach.
Link has previously stated it is focusing its business on its Retirement and Superannuation Solutions (RSS) division and corporate markets, having divested its Funds Solution and Banking and Credit Management businesses earlier this year.
If approved, Link shareholders will receive $2.10 cash per share plus a dividend of $0.16 cash per share expected to be paid by Link which will be franked at 25 per cent, totalling $2.26 per share.
This represents a significant premium of 32.9 per cent to the closing price on 15 December and values the company’s equity at $1.2 billion with an enterprise value of $2.1 billion.
The board of Link recommends that its shareholders vote in favour of the proposal in the absence of a superior proposal.
Link Group CEO and managing director, Vivek Bhatia, said: “The proposed transaction validates Link Group’s leading global technology-enabled platforms, which serve as core infrastructure in financial markets in multiple jurisdictions around the world.
“Joining forces with a global leader with MUFG and The Trust Bank will be significantly beneficial to our clients and employees. Their long-term investment horizon will further evolve our service proposition, bolster our growth strategy and open up significant opportunities for our businesses.”
Business head of MUFG Investor Services, Takafumi Ihara, said: “We truly believe the acquisition of Link Group will further enable MUFG to accelerate its global business expansion with access to Australian superannuation funds and global corporate clients to service with our broad range of MUFG’ solutions and enabling us to strengthen the global reach, develop growth opportunities and expand the business scale together.”
