Citi sees higher offers incoming for Australia's Link Administration after failed $2.2 bln bid

PExA AB

29/04/2021 02:25

** Citi Research says the withdrawal of a $2.2 bln bid for
Australia's Link Administration  LNK.AX  opens up the path for a
higher bid, retains "buy" rating
    ** Link said on Wednesday that a consortium, which included
Carlyle Group  CG.O  and Pacific Equity Partners, had withdrawn
its A$2.87 bln ($2.24 bln) offer  urn:newsml:reuters.com:*:nL4N2MK59Z
    ** Co indicated its 44% stake in online real estate firm
PEXA has stoked higher bid interest 
    ** Citi reckons that a price equivalent to at least A$2.5
bln, and potentially more, for 100% of PEXA is achievable
    ** Says it believes interest likely from two main sources -
infrastructure buyers focused on core exchange revenue and
earnings and private equity buyers attracted by the potential
upside from international expansion
    ** Says PEXA process is tracking well with higher bids than
the consortium bid implied, and that FY21 earnings are tracking
in line with consensus expectations
    ** Also flags good prospects a potential sale or IPO for
PEXA with a relatively keen seller and a market with abundant
liquidity

($1 = 1.2812 Australian dollars)

 (Reporting by Arundhati Dutta in Bengaluru)
 ((Arundhati.Dutta@thomsonreuters.com;))