SYDNEY — Link Administration shares jumped after the company announced a 1.2 billion Australian-dollar (US$804.7 million) buyout by a unit of Japanese banking firm Mitsubishi UFJ Financial Group.
Link’s shares
LNK,
rose 27% to A$2.16 on Monday, after earlier hitting a high of A$2.19.
The Australian financial technology company’s board is unanimously backing the buyout in the absence of a superior proposal.
“The board believes that the proposed transaction will benefit both shareholders and stakeholders,” Link Chair Michael Carapiet said.
Under the deal, Link shareholders will receive A$2.10 in cash, in addition to a dividend of A$0.16 a share, expected to be paid by the company. This results in a total of A$2.26 a share, implying an enterprise value of A$2.1 billion.
“The board believes that the proposed transaction will benefit both shareholders and stakeholders,” Link Chair Michael Carapiet said.
Mitsubishi UFJ
8306,
has agreed to acquire Link via a scheme of arrangement through the Japanese company’s Mitsubishi UFJ Trust & Banking subsidiary, Link said, noting that the scheme is expected to be implemented in June 2024, subject to approval.
Link is up around 9.4% for the year.