Australia's Link Administration to exit PEXA Group holding (updated)

PEXA

18/11/2022 06:54

(Adds details, background)
       Nov 18 (Reuters) - Australian share registry firm Link
Administration  LNK.AX  said on Friday it would sell about 10%
of its holding in PEXA Group  PXA.AX  for A$102.4 million
($68.71 million) and distribute the remaining stake to its
shareholders.
    Link will sell about 7.6 million shares of the online
property settlement firm, or 4.3% of issued capital, at A$13.50
apiece, a 4.8% discount to the stock's Friday close. Link owns a
42.77% stake in PEXA, according to Refinitiv Eikon data.
    The company plans to distribute the remaining PEXA stake to
its shareholders as an in-specie dividend. 
    "The PEXA selldown will provide Link Group with balance
sheet flexibility as it executes on its strategic plan," Link
Chief Executive Officer and Managing Director Vivek Bhatia said.
    Link had been a takeover target of Canada's Dye & Durham
 DND.TO  and a $1.63 billion proposed acquisition failed in
September due to regulatory headwinds and global market
volatility. 
    In June, Australia's competition regulator had expressed
concerns over Link's PEXA holding, saying that aligning Dye &
Durham with PEXA could significantly increase vertical
integration in the conveyancing sector.
    Dye & Durham, which makes software for businesses including
real estate, has since bid for Link's corporate markets and
banking segments in a A$1.27 billion deal, which the share
registry firm said it was considering.
    Dye & Durham did not immediately respond to a Reuters
request for comment outside regular business hours.   
($1 = 1.4903 Australian dollars)
 (Reporting by Harshita Swaminathan; Editing by Subhranshu Sahu)
 ((Harshita.Swaminathan@thomsonreuters.com;))