Link Group Soars on AU$1.2 Billion Takeover Offer from Mitsubishi UFJ Trust & Banking Corporation

Highlights:

• Link Group has entered into a scheme implementation deed with Mitsubishi UFJ Trust & Banking Corporation.
• Link Group shareholders stand to receive an attractive AU$2.26 per share if the proposal gains approval.
• The agreement values Link Group's equity at a noteworthy AU$1.2 billion.

Strategic Deal Unveiled

Link Group (ASX: LNK), a leading fintech company, has entered into a scheme implementation deed with Mitsubishi UFJ Trust & Banking Corporation, signaling a significant development in the financial sector.

Generous Offer for Shareholders

Under the scheme, Link Group shareholders stand to receive an attractive AU$2.26 per share if the proposal gains approval. This includes a AU$2.10 cash offer per share and an additional anticipated AU$0.16 cash dividend per share, providing shareholders with a substantial 32.9% premium over the closing price on December 15, 2023.

Valuation and Board Recommendation

The agreement values Link Group's equity at a noteworthy AU$1.2 billion, implying a robust enterprise value of AU$2.1 billion. Link Group's Board unanimously recommends that shareholders vote in favor of the scheme, emphasizing its alignment with shareholder interests.

Market Response and Trading Activity

Following the announcement, Link Group's share price experienced a surge, reaching AU$2.16 at 11:00 am AEDT. This strategic move comes amid a wave of mergers and acquisitions in the Australian listed company landscape, marking a trend in the final months of 2024.

Strategic Alignment and Global Expansion

Link Chair Michael Carapiet highlighted the Board's thorough evaluation, affirming that the proposed transaction is aligned with the Board's priority to deliver shareholder value. Trust Bank Senior Managing Executive Officer Takafumi Ihara echoed these sentiments, expressing confidence in the acquisition's potential to accelerate MUFG's global business expansion.

Future Steps and Timeline

Link Group shareholders can expect further details through a Scheme Booklet, with a Scheme Meeting scheduled for May 2024. Pending approvals, the scheme is set to be implemented in June 2024, marking a pivotal moment for Link Group and its shareholders.

Closing Note:

The proposed takeover by Mitsubishi UFJ Trust & Banking Corporation positions Link Group in a transformative phase, promising significant benefits for shareholders and stakeholders alike. The Board's unanimous recommendation underscores the strategic value and positive outlook associated with this noteworthy deal. Investors will be closely monitoring developments as the scheme progresses towards implementation.

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