Here’s why the Link (ASX:LNK) share price is edging higher today

The Link Administration Holdings Ltd (ASX: LNK) share price is edging higher today following two positive updates announced to the ASX market.
The post Here’s why the Link (ASX:LNK) share price is edging higher today appeared first on The Motley Fool Australia. –

hand on touch screen lit up by a share price chart moving higher

The Link Administration Holdings Ltd (ASX: LNK) share price is edging higher today following two positive updates.

While the broader ASX market has fallen heavily in the past few days, the administration services company’s shares are pushing 1.67% higher to $4.86.

What’s new?

The Link share price is on the move today after the company provided investors with updates on its previously announced Pepper European Servicing (PES) takeover, and demerger of its investment in Property Exchange Australia Limited (PEXA).


In today’s release, Link advised that it will exercise its right to terminate the binding agreement to acquire PES. This comes after the transaction, pending regulatory approvals and commercial conditions, lapsed the expiry date.

Previously, Link entered into a binding agreement on 30 January, 2020, to takeover PES from the Pepper Group for £165 million.

Based in London, PES provides end-to-end loan servicing and asset management in residential and commercial sectors throughout Europe.


In additional news, Link also revealed that the trade sale process of PEXA is tracking along well.

The company stated that it will put forward the trade sale process to maximise value for shareholders. Link will demerge its investment in PEXA through the sale of its shares and shareholder loans. Furthermore, the company said that the refinancing of its external debt will no longer go ahead.

Words from the head of Link

Commenting on the updates, Link Group CEO & managing director Vivek Bhatia said:

The Link Group business is resilient with strong foundations. We have a clear strategic focus to simplify the business, deliver the global transformation program and maintain a strong balance sheet. As a result of the termination of the PES transaction, we will preserve the capital for future growth opportunities.

The board is committed to maximising the value of its interest in PEXA for Link Group’s shareholders. PEXA’s cash balance continues to strengthen month-on-month highlighting the strong cash-flow conversion of this investment.

About the Link share price

The Link share price has underperformed over the past 12 months, with its shares down 25%.

Having reached a 52-week high of $6.65 last January, the company’s shares took a steep dive in the following months. During the coronavirus-led market meltdown in March, its shares hit an all-time low of $2.64 before gradually climbing over time.

Based on the current share price, Link commands a market capitalisation of roughly $2.5 billion.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Aaron Teboneras 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 has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Link (ASX:LNK) share price is edging higher today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!