Herbert Smith Freehills acted for Link Group on divestment of its PEXA stake
Herbert Smith Freehills acted for Link Group on divestment of its PEXA stake
Herbert Smith Freehills, an international law firm, has advised Link Administration Holdings Limited, a leading Australian financial data and technology company, on the sale of its 42.8 per cent stake in Property Exchange Australia (PEXA) Group Limited. The divestment was a part of Link's strategy to focus on its core business offerings. Link Group provides a range of financial services including retirement and superannuation solutions, corporate markets, fund solutions, and banking and credit management.
Link Administration Holdings Limited (Link Group) is an Australian technology-driven financial services company that provides a range of services including administration of retirement and superannuation solutions, corporate markets, fund solutions, and banking and credit management. The company uses technology to manage financial ownership data and enhance user engagement.
PEXA operates a digital property settlements platform in Australia. The company has offices in Melbourne, Sydney, Brisbane, Perth, and Adelaide.
The divestment of Link Group's 42.8 per cent stake in PEXA Group Limited involved both a selldown and in-specie distribution. Link Group has executed an in-specie distribution of its interest in PEXA to its shareholders as part of a capital reduction, which may also include a dividend. The market value of the dividend was estimated to be approximately $860 million on January 9, 2022.
The dividend distribution follows an earlier selldown by Link Group of 10 per cent of its 42.77 percent interest in PEXA, representing 4.3 per cent of the issued capital in PEXA for total net proceeds of $101.9 million.
The Herbert Smith Freehills team that advised Link Group was led by corporate M&A partners Tony Damian and Nicole Pedler. The team also included senior associate Jennifer Xue, and solicitors Jacob Lancaster and Nick Venn.
"We are proud to be advising Link Group on this transaction, which will provide Link Group shareholders with direct exposure to PEXA and its potential future growth," Damian said.
Pedler also commented, "The distribution is an important milestone that unlocks flexibility for Link Group shareholders, and we are glad to have been able to support the Link Group team throughout the transaction."
