Fintech powerhouse Link Administration (ASX:LNK)
has confirmed a plan to float property transaction processor PEXA, in a bid to fend off buyout interest from other companies.
PEXA is a leading company established in 2010 in the property lodgments and settlements market. With a 44 per cent stake in PEXA, Link is currently the biggest shareholder out of a consortium of owners including Commonwealth and Morgan Stanley.
The $2.9 billion ASX-listed group has today informed investors of its intention to upgrade its interest in PEXA to 47 per cent and list the company on the ASX. The listing is tipped to be the biggest initial public offering (IPO) since 2019.
The move happened on the back of two unsuccessful takeover bids for PEXA, which Link rejected due to their undervaluations of the business. A book build process conducted on Friday has indicated the company’s implied valuation of $3.3 billion.
This represents a premium of $300 million to US equity giant KKR and Domain Holdings’ joint offer and a premium of $400 million to the offer from a consortium led by Pacific Equity Partners and Carlyle.
Link has emphasised the $3.3 billion IPO valuation justifies the company’s decision to decline the aforementioned buyout attempts, as Link’s CEO Vivek Bhatia has recognised this achievement as “an outstanding outcome for the shareholders of Link Group.”
Shares in Link Administrations (ASX:LNK)
are trading 4.8 per cent lower at $5.19