Link Group is PEXA’s largest shareholder at 44%. After a lot of effort in building its ownership to 44% it now wants out of econveyancing. Probably more accurately, Link wants to cash-in on its stake and reduce its overall business debt rather than exit from a business with a promising future.
The trade sale process of Link Group’s interest in PEXA is underway with good indicative interest received to date.
Link Group will prioritise the trade sale process, being the sale of its shares and shareholder loans in PEXA, over the separation by way of demerger of its investment in PEXA. Further, the external debt refinancing of PEXA as previously announced will no longer proceed.
Link Group CEO & Managing Director, Vivek Bhatia, said: “The Link Group business is resilient with strong foundations. We have a clear strategic focus to simplify the business, deliver the Global Transformation Program and maintain a strong balance sheet. As a result of the termination of the PES transaction, we will preserve the capital for future growth opportunities.
“The Board is committed to maximising the value of its interest in PEXA for Link Group’s shareholders. PEXA’s cash balance continues to strengthen month-on-month highlighting the strong cash-flow conversion of this investment.”
An analyst quote in in SMH stated:
“It’s not like you’re trying to sell a business, you’re trying to sell a stake in a business. You’re trying to find someone who wants to go into an unlisted business. It’s a highly regulated, highly politicised investment,” he said.