The S&P/ASX 200 Index (ASX:XJO) finished the day higher. The Link Administration Holdings Ltd (ASX:LNK) share price jumped 24% higher today.
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The S&P/ASX 200 Index (ASX: XJO) finished the day higher, rising by 0.5% to 6,132 points.
Here are the highlights from the ASX 200 today:
Takeover play for Link Administration Holdings Ltd (ASX: LNK)
The Link share price soared 24.5% higher today after the financial administration business announced a takeover play to acquire it.
Link said that it has received a conditional, non-binding indicative proposal from a consortium comprising Pacific Equity Partners (PEP), Carlyle Group and their affiliates to acquire 100% of Link in a takeover.
The indicative cash price offered to shareholders under the proposal is $5.20 per share. That offer would be a premium of around 30% compared to the closing price last week on Friday.
However, Link’s share price didn’t rise to $5.20 today. The proposal is still subject to a number of conditions including due diligence, negotiation and the execution of transaction documentation, securing debt financing, final investment committee approval from the relevant consortium committees and certain regulatory and other approvals, including the Foreign Investment Review Board (FIRB).
Existing substantial shareholder Perpetual Limited (ASX: PPT) has indicated it intends to vote in favour of the takeover, subject to it remaining a shareholder and there being no superior proposals.
The Link board said it will consider the proposal, including obtaining advice from its financial and legal advisers. The ASX 200 share said shareholders didn’t need to take any action.
Bapcor Ltd (ASX: BAP) drives higher
The Bapcor share price went up by 3% today after the automotive business announced a trading update for the quarter ending 30 September 2020.
The ASX 200 business said that during the first quarter of FY21, the government-imposed restrictions in Victoria and Auckland have had negative impacts on trading operations in those places. However, despite that, Bapcor’s businesses have continued to perform extremely well.
Compared to the three months to 30 September 2019, Burson Trade revenue grew by 10% with same store sales (SSS) up 7.7%, or up 17% excluding Victoria.
New Zealand revenue rose by 6% with SSS of 4%.
Retail revenue surged 47%, with Autobarn SSS rising 36% and AB Company SSS jumping 50%.
Specialist wholesale revenue grew by 45%, though excluding acquisitions it increased by 18%.
Putting all that together, Bapcor’s total revenue went up 27%.
Bapcor CEO Darryl Abotomey shared some thoughts about the rest of FY21:
“The automotive aftermarket is a resilient industry and historically has performed strongly in difficult circumstances. Recent trading is another example of its resilience assisted by the increase in sales of second hand cars, reduction in use of public and shared transport modes as well as government stimulus of second hand cars, reduction in use of public and shared transport modes as well as government stimulus. We envisage that the impacts of COVID-19, including the expected increase in domestic tourism and increased use of vehicles will continue to drive the Bapcor businesses.
“Bapcor is continuing to invest in its various businesses, including through information technology, marketing, process and system upgrades and capital investment in facilities to increase our footprint and to drive improved efficiencies. These investments do increase the cost base but will assist driving profit growth in the future.”
The ASX 200 share is expecting a strong first half, but the second half remains unclear and there are still uncertainties, so it couldn’t provide a forecast of earnings for FY21.
Bravura Solutions Ltd (ASX: BVS) acquisition
Bravura announced an acquisition today.
It’s acquiring Delta Financial Systems for a total consideration of up to £23 million, which is $41.5 million in Australian dollar terms.
Bravura has targeted this UK acquisition because it will complement Bravura’s core Sonata offering and broadens Bravura’s ecosystem of products and services.
The ASX 200 share said that Delta Financial Systems’ FY20 pro forma revenue was £6 million and is forecast to achieve revenue growth in the range of 20% to 30% with profit margins similar to Bravura’s wealth management segment.
It’s expected to add to earnings per share (EPS) in FY21 and it will be funded from existing cash reserves.
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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor and Bravura Solutions Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.