Link Completes Capital Raising

Link Administration shares jumped more than 2% to $8 after the financial services firm completed its capital raising to help pay for its $1.5 billion move into the UK.

The company raised about $700 million in the institutional entitlement offer, which will be used to help fund the purchase of Capita’s asset management services business.

Link offered existing shareholders the opportunity to buy 4 new shares for every 11 already held in an attempt to raise as much as $883 million to fund the deal, with the difference to come largely from a new £485 million bank debt facility.

The new shares were offered at $6.75 each, representing a 13.8% discount to the last closing price a week ago before the shares went into a trading halt on Monday.

In a statement yesterday Link said the institutional entitlement offer was strongly supported by eligible institutional shareholders, who took up over 98%, while the Institutional book build clearing price of $7.70 a new Share, representing an 95 cent premium to the offer price of $6.75 for each new share.

The retail entitlement offer opens on Wednesday, next week on July 5. It is looking to raise around $183 million.

And there was a reminder to Link’s board and management of companies that get big moves offshore wrong (especially in the UK) wrong from the news yesterday (see separate story) of a clean out of the board and management at Slater and Gordon and the change of control for that company to its lenders in a recapitalisation.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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