Skip to content
Join our Newsletter

U.K. regulator adds new wrinkle in Dye & Durhram deal for Link Group

TORONTO — A U.K. regulator has assessed a penalty of 50 million pounds against Link Group, the Australian company that Dye & Durham Ltd. is trying to acquire, raising questions about the future of the deal.
20220921110912-632b2a7eb962d0d911356cf3jpeg
The logo for Dye & Durham Ltd. is shown in this undated handout photo. A U.K. regulator has assessed a penalty of 50 million pounds against Link Group, the Australian company that Dye & Durham Ltd. is trying to acquire, raising questions about the future of the deal. THE CANADIAN PRESS/HO

TORONTO — A U.K. regulator has assessed a penalty of 50 million pounds against Link Group, the Australian company that Dye & Durham Ltd. is trying to acquire, raising questions about the future of the deal.

The penalty is in addition to a potential restitution payment of up to about 306 million pounds.

Toronto-based Dye & Durham says the draft notice from the U.K. Financial Conduct Authority (FCA) triggers a condition in its deal to acquire Link Group. 

The company says it continues to attempt to engage with Link Group in respect of the proposed acquisition.

Dye & Durham has sought to revise its takeover agreement after the FCA said it would not approve the deal unless Dye & Durham covers any shortfall, up to a maximum of 306 pounds million, related to any payments the FCA may levy in its probe into the collapse of a fund that was managed by Link Fund Solutions Ltd.

Dye & Durham has proposed to pay A$3.81 per Link share, plus up to A$1 per share depending on the outcome of an investigation by the FCA within 24 months of the closing, rather than the A$4.81 per Link share under the initial agreement, a proposal Link has rejected.

This report by The Canadian Press was first published Sept. 21, 2022.

Companies in this story: (TSX:DND)

The Canadian Press