Mitsubishi UFJ to buy Australian fintech company Link

By Alice Uribe

SYDNEY - Link Administration shares jumped after the company announced a 1.2 billion Australian-dollar (US$804.7 million) buyout by a unit of Japanese banking firm Mitsubishi UFJ Financial Group.

Link's shares (AU:LNK) rose 27% to A$2.16 on Monday, after earlier hitting a high of A$2.19.

The Australian financial technology company's board is unanimously backing the buyout in the absence of a superior proposal.

"The board believes that the proposed transaction will benefit both shareholders and stakeholders," Link Chair Michael Carapiet said.

Under the deal, Link shareholders will receive A$2.10 in cash, in addition to a dividend of A$0.16 a share, expected to be paid by the company. This results in a total of A$2.26 a share, implying an enterprise value of A$2.1 billion.

"The board believes that the proposed transaction will benefit both shareholders and stakeholders," Link Chair Michael Carapiet said.

Mitsubishi UFJ (JP:8306) has agreed to acquire Link via a scheme of arrangement through the Japanese company's Mitsubishi UFJ Trust & Banking subsidiary, Link said, noting that the scheme is expected to be implemented in June 2024, subject to approval.

Link is up around 9.4% for the year.

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12-17-23 2011ET

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