Link Administration Holdings has agreed to give up more of its partly-owned PEXA property conveyancing business ahead of its ASX listing due tomorrow (Thursday).
Link revealed plans last month to publicly list PEXA in a $3.3 billion valuation, after months of exploring potential deals for private equity ownership. The catalyst was a $3.1 billion offer from US investor KKR, with the Domain offshoot of Nine Entertainment to pick up a 10% stake.
That was rejected for a float as quickly as possible and that is down to happen on Thursday.
Link had said in the middle of this month that it would retain up to 47% holding in the listed PEXA
But on Tuesday, Link confirmed its shareholding would be 42.8% – below its longstanding 44% holding.
That will see Link will receive around $180 million in the listing as net cash proceeds.
Link said that would be used to reduce debt.
Link chief executive Vivek Bhatia said he was extremely pleased with the outcome of the PEXA IPO.
“Link Group has retained a significant holding in PEXA while strengthening its own balance sheet,” he said.
Link shares rose 0.6% to $5.01 in Tuesday’s weak market.