The Link Administration Holdings Ltd (ASX: LNK) share price is moving higher in morning trade, up 1%.
Link shares closed on Friday at $5.09 and are currently trading for $5.14.
Link, which provides tech-enabled administration services for superannuation funds and corporate markets, released an update on the progress of its acquisition Scheme of Arrangement with Dye & Durham Corp.
Here's the gist.
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What progress was reported in the acquisition scheme?
The Link share price is up today after the company said all applications for regulatory approvals under the Scheme Implementation Deed have now been submitted.
The scheme involves the "conditional, non-binding indicative proposal" from LC Financial Holdings (LCFH) to acquire Link Group's Banking and Credit Management (BCM) business.
The Motley Fool reported on the proposal when it was first announced on 22 December.
In today's release, Link reported that its discussions with LCFH have not resulted in a binding agreement for the sale of its business.
Link and Dye & Durham agreed "to use best endeavours" to sell BCM for 12 months after the implementation of the Scheme.
According to the release, if Link Group receives BCM proceeds within 12 months of implementation, Link Group shareholders will be entitled to a maximum of 13 cents per Link share held on the Scheme Record Date, from the BCM sale proceeds.
Commenting on the progress, Dye & Durham Corporation's CEO, Matthew Proud said:
We remain firmly committed to the acquisition of Link Group in June or July of this year. Link Group is a technology-driven provider of mission critical software for financial services and corporate business segments. This acquisition, which is fully funded, will broaden and strengthen our offering in our key markets and enable us to deliver even greater value to our customers over the long term.
We look forward to working with Link Group to progress the transaction first and foremost, but also to crystalise the value in BCM to the benefit of shareholders.
Link said that, subject to the outcome of the shareholder vote and regulatory approvals, it hopes to complete the Scheme in June or July.
Link share price snapshot
Since announcing the acquisition scheme on 22 December, the Link share price is up 9.1%.
For some context, the S&P/ASX 200 Index (ASX: XJO) is up 0.3% in that same period.
So far in 2022, Link shares are down 7.9%.
