In December, the bid was $ 5.50 per share, and later independent expert Deloitte valued Link between $ 4.81 and $ 5.97 per share.
The easiest place to start is the 45% stake in Link’s PEXA Group. The stake was worth $ 2.37 per share of Link when Dye & Durham signed its deal in December, and is now worth $ 1.92.
Then there are the myriad of Link businesses: RSS, capital markets, financial services, BCM, which Deloitte valued according to its peers. RSS was compared to Iress and Bravura, for example, while capital markets were like ASX and Computershare and financial services were similar to Perpetual, EQT or Iress.
Given the many moving parts, it may be easier to compare Link to the All Technoogy index, where Link, Iress, Computershare, Bravura and the like are members, which has dropped 33% in the six months since the signing.
If you do a similar blow to Deloitte’s valuation and add the reduced PEXA stake, you could argue that Link is now worth between $ 3.40 and $ 4.20 per share.
It is clear that between $ 3.40 and $ 4.20 is nowhere the agreement signed at $ 5.50. But neither did the company’s stock price, which was last seen at $ 3.69.
So it might be time for popcorn, again …