Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Link Group (LNK AU): KKR Opens The Bidding For PEXA

Link Admin (LNK AU) Goes IPO Route For PEXA Afterall

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

Link Admin: Hardball Tactics After Meagre Bump

Link Admin (LNK AU): SS&C Trumps PEP/Carlyle

Quiddity Advisors

Event-Driven

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<p>Back on the 12 October,  <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. 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>
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<div>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 "<em>materially undervalued the company</em>", 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. The proposal included an option of a cash offer for Link ex-Property Exchange Australia (PEXA) of A$3.80/share. Shareholders with <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02298654-2A1258715?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">14.62%</a> of shares out stated their intention to vote in favour of PEP/Carlyle's latest proposal. 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 due diligence access nonetheless.</div>
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<div>Shortly after, 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> <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">pitched</a> a non-binding indicative proposal, by way of Scheme, at A$5.65/share, 4.6% above PEP/Carlyle's proposal. 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">granted</a> SSNC due diligence, despite the Offer "not being compelling". But on the 3 January, 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">withdrew</a> its proposal.</div>
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<div>Then crickets. In its 1H21 results (25 Feb), Link simply <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02346108-2A1282955?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">said</a>: "<em>PEP/Carlyle engagement remains active.</em>"</div>
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<h3>The NEW News</h3>
<div>After months of Link saying to investors it has received various interest in its PEXA stake, indicative bids are now coming in for Link's 44% stake in the digital property settlements group.</div>
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<div>Bids are expected to top A$1bn+ for Link's stake, or $1.86/share - vs. A$1.60/share under PEP/Carlyle's non-binding proposal.</div>
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<p>More below the fold.</p>
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Back on the 12 October,  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.


After Link said the proposal "materially undervalued the company", PEP/Carlyle tabled a A$5.40/share non-binding indicative Offer, in cash. The proposal included an option of a cash offer for Link ex-Property Exchange Australia (PEXA) of A$3.80/share. Shareholders with 14.62% of shares out stated their intention to vote in favour of PEP/Carlyle's latest proposal. Link responded that the proposal was not compelling - but gave the consortium due diligence access nonetheless.


Shortly after, 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 granted SSNC due diligence, despite the Offer "not being compelling". But on the 3 January, SS&amp;C withdrew its proposal.

Then crickets. In its 1H21 results (25 Feb), Link simply said: "PEP/Carlyle engagement remains active."



  
The NEW News
After months of Link saying to investors it has received various interest in its PEXA stake, indicative bids are now coming in for Link's 44% stake in the digital property settlements group.


Bids are expected to top A$1bn+ for Link's stake, or $1.86/share - vs. A$1.60/share under PEP/Carlyle's non-binding proposal.




More below the fold.


Link Administration

Link Admin (LNK AU): PEXA Bidding