The Link Administration Holdings Ltd (ASX: LNK) share price will be on watch on Thursday following the release of an update on the SS&C Technology takeover proposal.
What did Link announce?
On Monday, Link revealed that it received a conditional, non-binding indicative proposal from SS&C Technology to acquire it by way of a scheme of arrangement at an indicative cash price of $5.65 per share.
This was a 4.6% premium to the takeover offer it recently received from the Pacific Equity Partners and Carlyle Group consortium.
Today's announcement reveals that the Link board has carefully considered the SS&C proposal. This includes obtaining advice from its financial, tax, and legal advisors.
According to the release, the board notes the SS&C proposal is non-binding and indicative in nature, and subject to numerous conditions. These conditions include due diligence, unanimous Link board approval, and SS&C securing debt financing.
Furthermore, the Link board considers that the SS&C proposal does not represent compelling value for shareholders on a control basis.
Nevertheless, as with the Pacific Equity Partners and Carlyle Group consortium, the board considers it appropriate to provide SS&C with due diligence information on a non-exclusive basis. This is so that it can develop a proposal that may be capable of being recommended to shareholders.
It has advised that the due diligence information will be provided subject to entry into an appropriate confidentiality agreement containing suitable protections for Link. This includes a stand-still clause.
Once again, the company has warned that there is no certainty that such a proposal will eventuate and shareholders do not need to take any action in relation to the proposal. As always, the Link board advised that it will update shareholders if there are material developments in the future.
