The Link Administration Holdings Ltd (ASX: LNK) share price is having a strong day on Thursday.
In morning trade, the administration services company's shares are up 10% to $4.36.
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Why is the Link share price surging higher?
Investors have been scrambling to get hold of Link shares this morning after the company provided another update on its takeover saga.
But as you might have guessed from the Link share price reaction, this update is potentially a good one for shareholders.
According to the release, Dye & Durham has revised its base scheme consideration to $4.81 per share. While this is lower than the original base scheme consideration of $5.50 per share, it is higher than its recently revised offers of $4.30 per share and $4.57 per share.
In addition, Link shareholders remain entitled to receive net consideration of up to 13 cents per share from the sale of the Banking and Credit Management (BCM) business. This is if the business is sold and proceeds are received up to 12 months after the implementation of the revised scheme.
Dye & Durham has advised that it will shortly appoint financial advisers to sell Link BCM business and will commence this process immediately following implementation of the revised scheme.
Offer recommended
The Link board is unanimously recommending that shareholders vote in favour of the revised scheme in the absence of a superior proposal and subject to the independent expert concluding that it is fair, reasonable, and in the best interests of shareholders.
Subject to the same qualifications, each Link director intends to vote in favour of the revised scheme at the forthcoming scheme meeting.
Though, the deal will still require approval from the courts, regulators, and other customary conditions.
