Link Administration Holdings Limited, the ASX-listed administrator, has released an update on the progress of the sale of its Fund Solutions business and in relation to ongoing negotiations with the UK Financial Conduct Authority.
“Link Group is in exclusive negotiation with the Waystone Group in respect of the sale of the whole of its FS business, excluding Woodford-related liabilities. This follows a period of confidential exclusive negotiation with and due diligence by Waystone. Any transaction with Waystone is subject to successful finalisation of due diligence and finalisation of detailed legal agreements, and to board and other approvals. Link Group has granted a further period of exclusivity to Waystone to enable the parties to conclude the necessary legal agreements before the end of March 2023.
“At the same time, Link Group and Link Fund Solutions Limited (LFSL) are in advanced confidential discussions with the FCA to settle the FCA investigation against LFSL. The likely outcome of the sale to Waystone and of settlement with the FCA, if both are concluded, is that Link Group would receive no net proceeds of the sale of its FS business. If a settlement is agreed with the FCA, it would resolve the current FCA investigation and would also be contingent on a scheme of arrangement of LFSL to resolve all Woodford related contingent liabilities and redress obligations of LFSL.
“A sale of the FS business to Waystone would not be contingent on the scheme of arrangement or any FCA settlement becoming unconditional. No legally binding agreement has been reached with either Waystone or the FCA and at present there can be no certainty that any of such agreements will ultimately be concluded.”
At the end of 2020 Link was the subject of a bidding war between SS&C and Carlyle/Pacific Equity Partners, but no deal was agreed.