Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
<p>This insight provides a quick summary of gross/annualised (where possible) spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks.</p>
</div>
<div>
<p>I number 49, mostly firm, deals around the region.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


This insight provides a quick summary of gross/annualised (where possible) spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks.


I number 49, mostly firm, deals around the region.


More below the fold.


Asia-Pac Weekly Risk Arb Summary: Afterpay, Link Admin, Razer, AusNet, First Service

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<p><a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> announced that it received a non-binding indicative proposal from <a href="https://www.smartkarma.com/entities/carlyle-group-inc" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group Inc (CG US)</a>. Carlyle will offer A$3.00 cash per share plus a pro-rata distribution of Link’s 42.8% shareholding in <a href="https://www.smartkarma.com/entities/pexa-group-ltd" target="_blank" data-smartkarma-citation="entities:34716:1" rel="noopener">PEXA Group (PXA AU)</a> (worth A$2.38 per Link share at PEXA’s share price of A$16.23 on 4 November). The total consideration of A$5.38 per share is a 24.2% premium to the unaffected price of A$4.33 (on 4 November). Carlyle’s core Link (excluding PEXA stake) value of A$3.00 per share is a 53.8% premium to the implied core Link share price of A$1.95 per share (on 4 November). </p><p>Link is no stranger to bids and received several bids in the recent past, including from Carlyle. Carlyle and Pacific Equity Partners made an indicative A$5.20 per share offer on 12 October 2020, which was later raised to A$5.40 on 26 October but withdrawn on 28 April 2021. <a href="https://www.smartkarma.com/entities/ss-c-technologies-holdings" target="_blank" data-smartkarma-citation="entities:3464:1" rel="noopener">SS&amp;C Technologies (SSNC US)</a> lobbed an A$5.65 per share offer on 7 December 2020 but withdrew the offer on 3 January 2021. Also, <a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR &amp; Co Inc (KKR US)</a> and <a href="https://www.smartkarma.com/entities/domain-holdings-australia-ltd" target="_blank" data-smartkarma-citation="entities:26033:1" rel="noopener">Domain Holdings Australia (DHG AU)</a> proposed to acquire PEXA for A$3.1 billion on 27 May 2021 which was declined in favour of a separate listing for PEXA.  </p><p>Link’s Board has argued that the previous bids did not represent compelling value and sought to generate shareholder returns through the PEXA IPO and outlining ambitious FY26 targets in a November investor day. However, PEXA’s market cap of A$2.8 billion at last close is below KKR’s bid of A$3.1 billion. The lukewarm share price response (shares down -2% on the following day) to the investor day points to low confidence that the targets can be reached. </p><p>Carlyle’s latest offer is subject to due diligence, execution of transaction documents and securing debt financing. Due diligence should be short due to Carlyle’s access to the due diligence materials through its previous bid.  </p><div class="content-highlight"><p>The Board’s previous track record of knocking back bids has resulted in Link’s last close price of A$4.70 trading at a wide 14.5% gross spread to the indicative offer of A$5.38 per share. However, due to the Board’s failure to generate shareholder value and there no longer being a debate on PEXA valuation (as PEXA is now listed), the Board will face pressure to engage with Carlyle. We also think that Carlyle has room to sweeten its bid as its latest bid values core Link at A$3.00 per share, which is 21% below its previous offer which valued core Link at A$3.80 per share. </p></div>

Link Administration Holdings (LNK AU) announced that it received a non-binding indicative proposal from Carlyle Group Inc (CG US). Carlyle will offer A$3.00 cash per share plus a pro-rata distribution of Link’s 42.8% shareholding in PEXA Group (PXA AU) (worth A$2.38 per Link share at PEXA’s share price of A$16.23 on 4 November). The total consideration of A$5.38 per share is a 24.2% premium to the unaffected price of A$4.33 (on 4 November). Carlyle’s core Link (excluding PEXA stake) value of A$3.00 per share is a 53.8% premium to the implied core Link share price of A$1.95 per share (on 4 November). Link is no stranger to bids and received several bids in the recent past, including from Carlyle. Carlyle and Pacific Equity Partners made an indicative A$5.20 per share offer on 12 October 2020, which was later raised to A$5.40 on 26 October but withdrawn on 28 April 2021. SS&amp;C Technologies (SSNC US) lobbed an A$5.65 per share offer on 7 December 2020 but withdrew the offer on 3 January 2021. Also, KKR &amp; Co Inc (KKR US) and Domain Holdings Australia (DHG AU) proposed to acquire PEXA for A$3.1 billion on 27 May 2021 which was declined in favour of a separate listing for PEXA.  Link’s Board has argued that the previous bids did not represent compelling value and sought to generate shareholder returns through the PEXA IPO and outlining ambitious FY26 targets in a November investor day. However, PEXA’s market cap of A$2.8 billion at last close is below KKR’s bid of A$3.1 billion. The lukewarm share price response (shares down -2% on the following day) to the investor day points to low confidence that the targets can be reached. Carlyle’s latest offer is subject to due diligence, execution of transaction documents and securing debt financing. Due diligence should be short due to Carlyle’s access to the due diligence materials through its previous bid.  The Board’s previous track record of knocking back bids has resulted in Link’s last close price of A$4.70 trading at a wide 14.5% gross spread to the indicative offer of A$5.38 per share. However, due to the Board’s failure to generate shareholder value and there no longer being a debate on PEXA valuation (as PEXA is now listed), the Board will face pressure to engage with Carlyle. We also think that Carlyle has room to sweeten its bid as its latest bid values core Link at A$3.00 per share, which is 21% below its previous offer which valued core Link at A$3.80 per share. 

<div>
<p>Back on the 12 October last year,  <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02292481-2A1255763?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> a conditional, non-binding indicative proposal from a consortium comprising Pacific Equity Partners (PEP) and the Carlyle Group, by way of a Scheme. </p>
<p>The indicative cash price was A$5.20/share, a 30% premium to last close. Perpetual, holding 9.65% of shares out, said it would vote for a firm Offer of $5.20/share and above.</p>
<p>PEP had previously owned Link before it floated the company at A$6.37/share in 2015.</p>
<p>After Link <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02297758-2A1258281?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">said</a> the proposal from PEP/Carlyle "<em>materially undervalued the company</em>", the following events took place:</p>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 168.591px;">
<h3>Date</h3>
</td>
<td style="width: 534.94px;">
<h3>Data in the Date</h3>
</td>
</tr>
<tr>
<td style="width: 168.591px;">26-Oct-20</td>
<td style="width: 534.94px;">PEP/Carlyle <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02298663-2A1258716?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">tabled</a> a A$5.40/share non-binding indicative Offer, in cash.</td>
</tr>
<tr>
<td style="width: 168.591px;">28-Oct-20</td>
<td style="width: 534.94px;">Link <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02300645-2A1259592?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">responded</a> that the proposal was not compelling - but gave the consortium DD access nonetheless.</td>
</tr>
<tr>
<td style="width: 168.591px;">7-Dec-20</td>
<td style="width: 534.94px;">Software provider <a href="https://www.smartkarma.com/entities/ss-c-technologies-holdings" target="_blank" data-smartkarma-citation="entities:3464:1" rel="noopener">Ss&amp;C Technologies (SSNC US)</a> pitched a non-binding indicative proposal, by way of Scheme, at A$5.65/share, 4.6% above PEP/Carlyle's proposal.<br><br><em><a href="https://skr.ma/aNsnW" target="_blank" rel="noopener">Link Admin (LNK AU): SS&amp;C Trumps PEP/Carlyle</a></em>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>10-Dec-20</p>
</td>
<td style="width: 534.94px;">
<p>Link <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02320482-2A1269370?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">grants</a> <a href="https://www.smartkarma.com/entities/ss-c-technologies-holdings" target="_blank" data-smartkarma-citation="entities:3464:1" rel="noopener">Ss&amp;C Technologies (SSNC US)</a> due diligence, despite Offer not being compelling. </p>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>3-Jan-21</p>
</td>
<td style="width: 534.94px;">SS&amp;C <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02327774-2A1273133?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">withdraws</a> proposal for Link</td>
</tr>
<tr>
<td style="width: 168.591px;">26-Apr-21</td>
<td style="width: 534.94px;">Bids coming in for Link's 44% stake in PEXA, the digital property settlements group.<br><br><em><a href="https://skr.ma/BxzDT" target="_blank" rel="noopener">Link Admin (LNK AU): PEXA Bidding</a></em>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>28-Apr-21</p>
</td>
<td style="width: 534.94px;">
<p>After PEP/Carlyle <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02367784-2A1294740?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">withdrew</a> its proposal, Link said it had received non-binding indications for PEXA "significantly greater" than the $1.60/share proposed under the PEP/Carlyle Offer.</p>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>27-May-21</p>
</td>
<td style="width: 534.94px;">
<p>Link <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02379094-2A1300378?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it had received an Offer from KKR, in partnership with <a href="https://www.smartkarma.com/entities/domain-holdings-australia-ltd" target="_blank" data-smartkarma-citation="entities:26033:1" rel="noopener">Domain Holdings Australia (DHG AU)</a>, representing an EV of $3bn for 100% of PEXA, or A$1.38bn for Link's equity stake. <br><br><em><a href="https://skr.ma/NQHcJ" target="_blank" rel="noopener">Link Group (LNK AU): KKR Opens The Bidding For PEXA</a></em></p>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>30 May-21</p>
</td>
<td style="width: 534.94px;">
<p>Link <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02379720-2A1300690?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it would take PEXA public on with an enterprise value of A$3.3bn.<br><br><em><a href="https://skr.ma/CrBHo" target="_blank" rel="noopener">Link Admin (LNK AU) Goes IPO Route For PEXA Afterall</a></em></p>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>31-May-21</p>
</td>
<td style="width: 534.94px;">
<p><a href="https://www.smartkarma.com/entities/domain-holdings-australia-ltd" target="_blank" data-smartkarma-citation="entities:26033:1" rel="noopener">Domain Holdings Australia (DHG AU)</a><a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02379766-2A1300716?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it is no longer participating in the PEXA sale process. </p>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>15-Jun-21</p>
</td>
<td style="width: 534.94px;">
<p><a href="https://www.smartkarma.com/entities/pexa-group-ltd" target="_blank" data-smartkarma-citation="entities:34716:1" rel="noopener">PEXA Group (PXA AU)</a> prospectus <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02384387-2A1303417?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">lodged</a></p>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>1-Jul-21</p>
</td>
<td style="width: 534.94px;">
<p>PEXA commenced trading at <a href="https://www.pexa.com.au/news/pexa-lists-on-the-australian-securities-exchange" target="_blank" rel="noopener">$17.13/share</a>. Link held 42.8% at the conclusion of the IPO.</p>
</td>
</tr>
<tr>
<td style="width: 168.591px;">
<p>26-Aug-21</p>
</td>
<td style="width: 534.94px;">
<p>Link announced on-market buybacks up to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02412381-2A1318563?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$150mn</a></p>
</td>
</tr>
</tbody>
</table>
</div>
<h3>The New News</h3>
</div>
<div>
<p>Carlyle has returned to the well with a non-binding offer of <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02447824-2A1336602?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">$5.38/share</a>, by way of a Scheme, valuing Link at A$2.8bn.</p>
<p>The Offer consideration is $3.00/share in cash for Link's core business, plus a pro-rata distribution of Link’s 42.8% stake in <a href="https://www.smartkarma.com/entities/pexa-group-ltd" target="_blank" data-smartkarma-citation="entities:34716:1" rel="noopener">PEXA Group (PXA AU)</a>, which has a look-through value of A$2.38/share. Therefore Carlyle's proposal values each Link share at $5.38/share, a 24.2% premium to last close.</p>
</div>
<div>
<p>That looks to be a compelling Offer.</p>
</div>
<div>
<p>More below the fold.</p>
<p></p>
</div>


Back on the 12 October last year,  Link Administration Holdings (LNK AU) announced a conditional, non-binding indicative proposal from a consortium comprising Pacific Equity Partners (PEP) and the Carlyle Group, by way of a Scheme. 
The indicative cash price was A$5.20/share, a 30% premium to last close. Perpetual, holding 9.65% of shares out, said it would vote for a firm Offer of $5.20/share and above.
PEP had previously owned Link before it floated the company at A$6.37/share in 2015.
After Link said the proposal from PEP/Carlyle "materially undervalued the company", the following events took place:





Date


Data in the Date



26-Oct-20
PEP/Carlyle tabled a A$5.40/share non-binding indicative Offer, in cash.


28-Oct-20
Link responded that the proposal was not compelling - but gave the consortium DD access nonetheless.


7-Dec-20
Software provider Ss&amp;C Technologies (SSNC US) pitched a non-binding indicative proposal, by way of Scheme, at A$5.65/share, 4.6% above PEP/Carlyle's proposal.  Link Admin (LNK AU): SS&amp;C Trumps PEP/Carlyle




10-Dec-20


Link grants Ss&amp;C Technologies (SSNC US) due diligence, despite Offer not being compelling. 




3-Jan-21

SS&amp;C withdraws proposal for Link


26-Apr-21
Bids coming in for Link's 44% stake in PEXA, the digital property settlements group.  Link Admin (LNK AU): PEXA Bidding




28-Apr-21


After PEP/Carlyle withdrew its proposal, Link said it had received non-binding indications for PEXA "significantly greater" than the $1.60/share proposed under the PEP/Carlyle Offer.




27-May-21


Link announced it had received an Offer from KKR, in partnership with Domain Holdings Australia (DHG AU), representing an EV of $3bn for 100% of PEXA, or A$1.38bn for Link's equity stake.   Link Group (LNK AU): KKR Opens The Bidding For PEXA




30 May-21


Link announced it would take PEXA public on with an enterprise value of A$3.3bn.  Link Admin (LNK AU) Goes IPO Route For PEXA Afterall




31-May-21


Domain Holdings Australia (DHG AU)announced it is no longer participating in the PEXA sale process. 




15-Jun-21


PEXA Group (PXA AU) prospectus lodged




1-Jul-21


PEXA commenced trading at $17.13/share. Link held 42.8% at the conclusion of the IPO.




26-Aug-21


Link announced on-market buybacks up to A$150mn





The New News


Carlyle has returned to the well with a non-binding offer of $5.38/share, by way of a Scheme, valuing Link at A$2.8bn.
The Offer consideration is $3.00/share in cash for Link's core business, plus a pro-rata distribution of Link’s 42.8% stake in PEXA Group (PXA AU), which has a look-through value of A$2.38/share. Therefore Carlyle's proposal values each Link share at $5.38/share, a 24.2% premium to last close.


That looks to be a compelling Offer.


More below the fold.



Link Admin (LNK AU): Carlyle Returns. With A Lower Offer

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>Earlier today, <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> announced that it had received a non-binding indicative proposal from Carlyle Asia Partners to acquire 100% of the shares in Link Group by way of a Scheme of Arrangement for a consideration of A$3/share in cash plus a pro-rata distribution of Link Group's shareholding in <a href="https://www.smartkarma.com/entities/pexa-group-ltd" target="_blank" data-smartkarma-citation="entities:34716:1" rel="noopener">PEXA Group (PXA AU)</a>. At a lookthrough valuation of A$2.38 per Link Group share based on the PEXA holding, the Carlyle offer values <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> at A$5.38/share, a 24.2% premium to the last close.</p><p>This follows a consortium offer (of which Carlyle was a part) in October 2020 to acquire all the shares in Link Group at an indicative price of A$5.20/share. The Link Group board rejected the offer and then Carlyle upped their offer to A$5.40/share following which due diligence was granted. SS&amp;C then jumped into the fray with an A$5.65/share offer in December. Neither offer came to fruition and <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> went ahead with the listing of <a href="https://www.smartkarma.com/entities/pexa-group-ltd" target="_blank" data-smartkarma-citation="entities:34716:1" rel="noopener">PEXA Group (PXA AU)</a>.</p><p>And now here were are again with Carlyle making another go for <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a>.</p><p>We do not expect the Link Group Board to recommend the offer to shareholders but they could grant due diligence access in the hope of getting Carlyle to make a higher offer.</p>

Earlier today, Link Administration Holdings (LNK AU) announced that it had received a non-binding indicative proposal from Carlyle Asia Partners to acquire 100% of the shares in Link Group by way of a Scheme of Arrangement for a consideration of A$3/share in cash plus a pro-rata distribution of Link Group's shareholding in PEXA Group (PXA AU). At a lookthrough valuation of A$2.38 per Link Group share based on the PEXA holding, the Carlyle offer values Link Administration Holdings (LNK AU) at A$5.38/share, a 24.2% premium to the last close.This follows a consortium offer (of which Carlyle was a part) in October 2020 to acquire all the shares in Link Group at an indicative price of A$5.20/share. The Link Group board rejected the offer and then Carlyle upped their offer to A$5.40/share following which due diligence was granted. SS&amp;C then jumped into the fray with an A$5.65/share offer in December. Neither offer came to fruition and Link Administration Holdings (LNK AU) went ahead with the listing of PEXA Group (PXA AU).And now here were are again with Carlyle making another go for Link Administration Holdings (LNK AU).We do not expect the Link Group Board to recommend the offer to shareholders but they could grant due diligence access in the hope of getting Carlyle to make a higher offer.

<p>Investment administrator <a href="https://www.smartkarma.com/entities/praemium-ltd" target="_blank" data-smartkarma-citation="entities:9360:1" rel="noopener">Praemium Ltd (PPS AU)</a> has rejected a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02446233-3A580069?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">non-binding proposal</a> from key competitor <a href="https://www.smartkarma.com/entities/netwealth-group-ltd" target="_blank" data-smartkarma-citation="entities:25951:1" rel="noopener">Netwealth (NWL AU)</a>.</p>
<p>By way of a Scheme, Netwealth was offering 1 new NWL share for every 11.96 PPS shares, or an indicative Offer consideration of A$1.50, a 29% premium to last close, and a lifetime high.</p>
<p>PPS' board said the Proposal did not appropriately value Praemium’s current performance, near-term trajectory, growth momentum, and was not representative of recent transaction premia in the Australian platform and funds administration space.</p>
<p>This space is indeed hot. When PPS peer <a href="https://www.smartkarma.com/entities/onevue-holdings-ltd" target="_blank" data-smartkarma-citation="entities:24327:1" rel="noopener">Onevue Holdings (OVH AU)</a> was taken private in the middle of last year (as discussed by <a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar</a> in<em><a href="https://skr.ma/rGK8k" target="_blank" rel="noopener"> OneVue-Iress: Australian Deal Trading Wide</a></em>), the independent expert flagged (<a href="https://onevue.com.au/wp-content/uploads/2020/09/Scheme-Booklet_final.pdf" target="_blank" rel="noopener">page 132</a>) 12 peers (including PPS and NWL). Of the remaining 10:</p>
<ul>
<li>
<a href="https://www.smartkarma.com/entities/powerwrap-ltd" target="_blank" data-smartkarma-citation="entities:30664:1" rel="noopener">Powerwrap Ltd (PWL AU)</a> was taken private (by PPS) last October;</li>
<li>
<a href="https://www.smartkarma.com/entities/xplore-wealth-ltd" target="_blank" data-smartkarma-citation="entities:12161:1" rel="noopener">xplore (XPL AU)</a> was taken private by <a href="https://www.smartkarma.com/entities/hub24-ltd" target="_blank" data-smartkarma-citation="entities:12336:1" rel="noopener">Hub24 Ltd (HUB AU)</a> in <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02349028-2A1284538?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">March</a>;</li>
<li>
<a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> was subject to Offers from SS&amp;C and Carlyle, but in May this year opted to go the IPO route for PEXA, the digital property settlement platform - <em><a href="https://skr.ma/CrBHo" target="_blank" rel="noopener">Link Admin (LNK AU) Goes IPO Route For PEXA Afterall</a>;</em>
</li>
<li>
<a href="https://www.smartkarma.com/entities/iress-ltd" target="_blank" data-smartkarma-citation="entities:15342:1" rel="noopener">Iress Ltd (IRE AU)</a> backed an Offer from EQT but the two were <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02422609-3A576043?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">unable to agree</a> to a transaction in September - <em><a href="https://skr.ma/Rm5oC" target="_blank" rel="noopener">Iress (IRE AU) Accepts EQT's Latest Proposal</a></em>;</li>
<li>
<a href="https://www.smartkarma.com/entities/mainstream-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:30611:1" rel="noopener">Mainstream Group Holdings Ltd (MAI AU)</a> was taken private by Apex last month  - <em><a href="https://skr.ma/fu9ej" target="_blank" rel="noopener">Mainstream (MAI AU): Apex on Top Again as Bidding War Continues....</a></em>; and</li>
<li>
<a href="https://www.smartkarma.com/entities/hub24-ltd" target="_blank" data-smartkarma-citation="entities:12336:1" rel="noopener">Hub24 Ltd (HUB AU)</a> and <a href="https://www.smartkarma.com/entities/class-ltd" target="_blank" data-smartkarma-citation="entities:24287:1" rel="noopener">Class Ltd (CL1 AU)</a> entered into a Scheme Implementation Deed last month - <em><a href="https://skr.ma/odCXE" target="_blank" rel="noopener">Class - Hub24: Scheme Trading Wide</a></em>.</li>
</ul>
<p>Given the above, you can build an understanding why PPS would hold out for a superior Offer.</p>
<p>More below the fold.</p>

Investment administrator Praemium Ltd (PPS AU) has rejected a non-binding proposal from key competitor Netwealth (NWL AU).
By way of a Scheme, Netwealth was offering 1 new NWL share for every 11.96 PPS shares, or an indicative Offer consideration of A$1.50, a 29% premium to last close, and a lifetime high.
PPS' board said the Proposal did not appropriately value Praemium’s current performance, near-term trajectory, growth momentum, and was not representative of recent transaction premia in the Australian platform and funds administration space.
This space is indeed hot. When PPS peer Onevue Holdings (OVH AU) was taken private in the middle of last year (as discussed by Janaghan Jeyakumar in OneVue-Iress: Australian Deal Trading Wide), the independent expert flagged (page 132) 12 peers (including PPS and NWL). Of the remaining 10:


Powerwrap Ltd (PWL AU) was taken private (by PPS) last October;

xplore (XPL AU) was taken private by Hub24 Ltd (HUB AU) in March;

Link Administration Holdings (LNK AU) was subject to Offers from SS&amp;C and Carlyle, but in May this year opted to go the IPO route for PEXA, the digital property settlement platform - Link Admin (LNK AU) Goes IPO Route For PEXA Afterall;


Iress Ltd (IRE AU) backed an Offer from EQT but the two were unable to agree to a transaction in September - Iress (IRE AU) Accepts EQT's Latest Proposal;

Mainstream Group Holdings Ltd (MAI AU) was taken private by Apex last month  - Mainstream (MAI AU): Apex on Top Again as Bidding War Continues....; and

Hub24 Ltd (HUB AU) and Class Ltd (CL1 AU) entered into a Scheme Implementation Deed last month - Class - Hub24: Scheme Trading Wide.

Given the above, you can build an understanding why PPS would hold out for a superior Offer.
More below the fold.

Praemium (PPS AU) Spurns Netwealth's (NWL AU) Proposal

Australia

Link Administration Holdings Limited operates as a holding company. The Company, through its subsidiaries, provides fund administration, corporate markets, information, and digital and data services. Link Administration Holdings serves customers worldwide.

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Link Administration (LNK AU)

Asia-Pac Weekly Risk Arb Summary: Afterpay, Link Admin, Razer, AusNet, First Service

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Link Gets Another Offer from Carlyle

Link received another offer from Carlyle worth A$5.38 per share. Carlyle has room to sweeten its bid as its latest bid values core Link at A$3.00...

Arun George

Link Admin (LNK AU): Carlyle Returns. With A Lower Offer

Trading at a gross/annualised spread of 13.1%/34.7%, assuming five months to complete. There are risks attached to Indicative Offers. However,...

David Blennerhassett

Link Group (LNK AU): Carlyle's Back

Carlyle is back with an offer for Link Group. The consideration is A$3/share in cash and a pro-rata distribution of Link's holding in PEXA Group....

Brian Freitas

Praemium (PPS AU) Spurns Netwealth's (NWL AU) Proposal

Currently trading 2.8% through terms. Apart from the premium to last close, the proposal for Praemium appears full. Yet this sector is very much...

David Blennerhassett

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