Link’s M&A chain breaks into pieces Down Under

PEXA

08/12/2022 03:49

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
       MELBOURNE, Dec 8 (Reuters Breakingviews) - It’s hard to
feel bad for well-compensated bankers but Link Administration’s
 LNK.AX  M&A advisers at Macquarie  MQG.AX  and UBS  UBSG.S 
need some Christmas cheer. On Thursday their client pulled the
plug on negotiations for a partial takeover by Canada’s Dye &
Durham  DND.TO , effectively accusing its suitor of dithering.
Thus ends a two-year long battle that once valued the share
registry firm at A$2.8 billion ($1.9 billion).
    The saga included bids, for all or parts of Link, from
Carlyle  CG.O  and Pacific Equity Partners, KKR  KKR.N ,
software developer SS&C Technologies  SSNC.O  and Carlyle again
on its own before Dye & Durham swept in at the height of last
year’s Yuletide season to seemingly seal the deal. 
    Cratering valuations – not least Dye’s, which after
plummeting 72% in one year is now worth half its erstwhile
quarry – and the prospect of a more-than 300 million pound fine 
for a Link UK subsidiary prompted the buyer to first drop its
price and then target just parts of the company. 
    Macquarie and UBS did manage Link’s sale of a slug of its
43% stake in mortgage-settlement company PEXA  PXA.AX  and may
help distribute the remainder to shareholders. If Link offloads
its troubled London unit, the slimmed-down company, worth
perhaps A$800 million, could yet attract new interest. (By
Antony Currie)
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 (Editing by Una Galani and Thomas Shum)
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