Mitsubishi UFJ acquires Australian fintech company Link
SYDNEY — Link Administration shares soared after the company announced its A$1.2 billion (US$804.7 million) acquisition of a unit of Japanese banking company Mitsubishi UFJ Financial Group.
Link’s stock LNK,
It rose 27% to A$2.16 on Monday, hitting its previous high of A$2.19.
The Australian financial technology company’s board is unanimously backing an acquisition in the absence of a superior offer.
“The board believes that the proposed transaction will be beneficial to both shareholders and stakeholders,” said Link Chairman Michael Carapiet.
Under the transaction, Link shareholders will receive A$2.10 in cash on top of the A$0.16 per share dividend the company expects to pay. This gives a total of A$2.26 per share, equating to an enterprise value of A$2.1 billion.
“The board believes that the proposed transaction will be beneficial to both shareholders and stakeholders,” said Link Chairman Michael Carapiet.
Mitsubishi UFJ 8306,
Link said it had agreed to acquire Link through a consensual arrangement through the Japanese company’s Mitsubishi UFJ Trust & Banking subsidiary, a plan expected to be implemented in June 2024, subject to approval.
Link is up about 9.4% this year.
