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October 21, 2022

Link Group mulling options to divest UK subsidiary

Australia-based Link Administration Holdings is weighing options to sell its UK business Link Fund Solutions (LFS).

The company has roped in Macquarie Capital and UBS Securities Australia as its advisers in this regard.

The report comes close on heels of the UK Financial Conduct Authority’s (FCA) issuing warning that it would impose a fine of £50m on Link Fund Solutions (LFS) over its failings leading to the collapse of LF Woodford Equity Income Fund (WEIF).

The fine was in addition to £306m redress payment imposed by FCA.

Link, in a statement, said the FCA’s settlement decision procedure in this regard is underway.

The FCA move is said to have triggered the withdrawal of Link Group’s acquisition by Canadian company Dye & Durham (D&D), valued at over A$2.47bn ($1.55bn).

The proposed acquisition was denied by a local court, citing failure to meet necessary conditions.

Link Fund Solutions is facing a lawsuit by claims management firm RGL worth £100m in UK.

Additionally, two British law firms, Leigh Day and Harcus Parker, are reportedly pursuing Link US subsidiary through the UK courts in a case on behalf of 20,000 retail investors. Meanwhile, D&D is said to be in non-exclusive talks with Link in connection to a revised bid. The company is reportedly planning to take over Link’s corporate markets and business continuity management units for A$1.27bn.

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