Dye & Durham ups bid for Link

International firm Dye & Durham (D&D), which provides conveyancing, manual property settlement services, legal practice management software and information broking services, has yet again moved to buy administration services provider Link Administration Holdings.

Link currently holds a 42.7 per cent stake in PEXA Group, which operates an electronic lodgement network that facilitates digital conveyancing settlements and currently dominates the Australian e-conveyancing market.

Dye & Durham (D&D) has increased its takeover bid for Link Administration to $4.57 per share in base consideration after its reduced offer of $4.30 per share was rejected earlier this month.

As set out under the existing scheme implementation deed, Link shareholders would also be entitled to receive up to 13¢ per share if D&D reaches an agreement to sell Link’s banking and credit management business.

“The Link Group board will consider Dye & Durham’s revised offer, including obtaining advice from its advisers, and is continuing to engage with Dye & Durham in relation to whether an agreed position can be reached,” Link said in a statement to the ASX on Thursday (7 July).

D&D said that its latest proposal of up to $4.70 per share, which remains subject to agreement and documentation being successfully finalised, came after further additional negotiations with Link.

“The company believes that this second revised proposal will give greater certainty to Link Group shareholders regarding the transaction and will lead to its successful completion,” the firm said in a separate statement.

It also reiterated that it was not prepared to make any further amendments or alterations to the scheme implementation deed.

In a letter to its shareholders, Link confirmed that the scheme meeting and special general meeting that were due to occur on 13 July have been postponed and that a new date would be set as soon as possible.

D&D had previously reduced its takeover offer for Link to $4.30 per share in June, a fall of almost 22 per cent from the original offer price of $5.50 announced last December, after the ACCC raised competition concerns about the deal.

Last week, Link’s board indicated that it would not recommend this reduced offer but vowed to continue to engage with D&D.

As previously stated, Link said it intends to “evaluate alternatives for its business, including an in-specie distribution of a minimum of 80 per cent of its shareholding in PEXA”, in order to “maximise value for shareholders” if the takeover does not go ahead.

D&D earlier suggested that it was considering providing an undertaking to the ACCC in order to obtain its approval after the competition regulator raised “significant preliminary competition concerns” due to Link’s 42.77 per cent shareholding in PEXA.

“The proposed acquisition would align PEXA, a near monopoly provider of Electronic Lodgment Network services, with D&D, a significant supplier of software to lawyers and conveyancers, significantly increasing vertical integration in this industry,” the ACCC said.

The ACCC said it had not yet reached a view on D&D’s request for informal merger clearance for its proposed purchase of Link, and its final decision is currently scheduled for 8 September 2022.

[Related: ACCC raises alarm on PEXA owner deal]