In today’s briefing:
- Link Admin (LNK AU): Mitsubishi UFJ’s Bittersweet Scheme
- LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won
- Link Admin (LNK AU): MUFG’s Underwhelming Binding Offer
Link Admin (LNK AU): Mitsubishi UFJ’s Bittersweet Scheme
- Link Administration (LNK AU), the largest provider of services in Australia’s superannuation administration industry, has entered into a Scheme with Mitsubishi UFJ Financial Group.
- MUFJ is offering long-suffering Link shareholders A$2.10/share (in cash) plus a A$0.16/share dividend (25% franked), or a 32.9% premium, all-in, to the undisturbed price. It has not been declared final.
- The Offer has the board’s backing. A Scheme Meeting is expected to be held in May with possible completion in June 2024.
LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won
- LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won.
- The rights offering capital raise involves 142 million shares, which represent 39.7% of its existing outstanding shares.
- We believe this rights offering will have a negative impact on LG Display’s share price as it will significantly dilute existing shareholders.
Link Admin (LNK AU): MUFG’s Underwhelming Binding Offer
- Link Administration (LNK AU) has entered a SID with Mitsubishi UFJ Financial (MUFG) (8306 JP) at A$2.26 (A$2.10 scheme consideration + A$0.16 dividend), a 32.9% premium to the undisturbed price.
- The presence of several substantial shareholders, lack of irrevocables, a light offer, recent derisking of the business and a long-dated offer pose a challenge for the scheme to get up.
- MUFG’s offer could spark a rival offer, but Link’s long-suffering shareholders have endured a history of failed bids. At the last close, the risk/reward is unfavourable.
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