In today’s briefing:
- Link Admin (LNK AU): ACCC Approval & Index Changes
- Link Admin Gets ACCC Nod. Woodford Condition Outstanding
- Link’s Scheme in the Home Stretch by Securing ACCC and CBI Approval
- Oisix-Shida Stoush with SHiDAX Suggests Strong but Subtle Strategy
- Tyro in Play as It Rejects Potentia’s A$1.27 Offer
Link Admin (LNK AU): ACCC Approval & Index Changes
- The ACCC will not oppose the proposed acquisition of Link Administration (LNK AU) by Dye & Durham removing a major hurdle. Other regulatory approvals are still pending.
- If regulatory clearances are received in the next week and the Court approves the Scheme, Link Administration (LNK AU) will stop trading at the close on 15 September.
- We estimate passive trackers across all indices will need to sell 35.53m shares (A$153m; 18 days of ADV) of Link Administration (LNK AU) at the close on 15 September.
Link Admin Gets ACCC Nod. Woodford Condition Outstanding
- Link Administration (LNK AU) has announced the Australian Competition and Consumer Commission will not oppose Dye & Durham’s proposed acquisition.
- The next step is the rescheduled second court hearing on the 15 September.
- The key outstanding condition concerns the “Woodford Matters”, and whether D&D potentially waives this condition, or digs in its heels.
Link’s Scheme in the Home Stretch by Securing ACCC and CBI Approval
- Dye & Durham/DND’s proposed acquisition of Link Administration (LNK AU) at A$4.81 per share has received approvals from the ACCC and the Central Bank of Ireland.
- Key conditions precedent remaining are FIRB, UK FCA and Luxembourg approvals. The second court hearing date has been adjourned to 15 September.
- The transaction is in the home stretch and will likely complete. At the last close, the gross and annualised spread for a 27 September payment is 4.8% and 151%, respectively.
Oisix-Shida Stoush with SHiDAX Suggests Strong but Subtle Strategy
- Shidax Corp (4837 JP) is a food service business in the midst of a so-far reasonably successful restructuring. The family had a partner in Unison and hoped to extend.
- The founding family and Unison now have ~60% together, and they vote together. Unison wants out. The family wants Oisix ra daichi (3182 JP) in. So Oisix has tendered.
- But SHiDAX sees the conflict and minorities getting hosed. So they object. The “easy” solution is a full MBO with Oisix support.
Tyro in Play as It Rejects Potentia’s A$1.27 Offer
- Tyro Payments (TYR AU) rejected an indicative proposal from the Potentia consortium at A$1.27 per share as it was highly conditional and materially undervalued the business.
- Grok, the largest shareholder will vote for a Potentia scheme unless there is a rival scheme which is A$0.25 per share higher than the value of the Potentia proposal.
- Potentia’s move puts Tyro in play, and Grok’s involvement will force the Board to get an improved offer and/or flush out a competing bidder. There is another round to go.
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