The Link Administration Holdings Ltd (ASX: LNK) share price will be on watch on Tuesday following the release of an announcement after the market close yesterday.
What did Link announce?
On Monday afternoon Link announced that it has received a new unsolicited takeover approach, potentially sparking a bidding war.
According to the release, SS&C Technology has tabled an offer of $5.65 per share. This represents a 13.9% premium to Link’s last close price. This offer price assumes no further dividends, distributions, or reductions in capital.
SS&C Technology is a NASDAQ listed global provider of investment and financial software-enabled services and software for the financial services and healthcare industries.
This isn’t the first time SS&C Technology has taken a liking to an ASX listed share. Last year it outbid Bravura Solutions Ltd (ASX: BVS) in an ultimately unsuccessful attempt to acquire GBST Holdings.
The Link board advised that it will now consider the SS&C Technology proposal. This includes obtaining advice from its financial and legal advisers.
In the meantime, a consortium comprising Pacific Equity Partners and Carlyle Group continues to undertake due diligence in the Link data room.
The consortium currently has an offer of $5.40 per share on the table. Though, shareholders will no doubt be hoping that the offer from SS&C Technology, which is a 4.6% premium, will lead to an improved offer from the Pacific Equity Partners and Carlyle Group consortium.
For now, Link has told shareholders that they do not need to take any action in relation to the SS&C Technology proposal. It also warned that there is no certainty that the discussions with SS&C Technology will result in any transaction.
However, if there are material developments in the future, Link will inform shareholders as required under its continuous disclosure obligations.