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, +27.65% 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, -2.24% 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.