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Link (LNK) gets $73m bid for banking, credit management unit

By Andreas Ismar

07:56, 23 November 2021

Layers of coin stacks, line chart and night cityscape
Australia’s Link received unsolicited bid from LC Financial Holdings for its banking and credit management unit - Photo: Shutterstock

Australia’s Link Administration Holdings has received a €65m ($73m) unsolicited bid from LC Financial Holdings (LCFH) for its banking and credit management (BCM) business, the second offer for the unit within two weeks.

LCFH offers to pay €50m upfront, with the remaining €15m to be paid upon meeting certain targets, Link said in a statement.

The offer is higher than the EUR55m bid lodged by a syndicate led by Pepper European Servicing on 12 November.

BCM operates in Europe

Operating under the BCMGlobal brand, Link’s banking and credit management unit has operations in Ireland, the UK, the Netherlands and Italy.

Link has allowed both bidders to conduct their due diligence process.

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Progress on Carlyle’s takeover bid

Earlier this month, Link received a AUD2.8bn ($2.02bn) takeover bid from Carlyle Group, the second time the private equity firm made a bid for the data services company.

Link said on Tuesday that it has granted Carlyle and its advisers access to virtual data room and executive leadership team.

Following the announcement, Link’s stock price rose to as high as AUD4.97 before ending the day at AUD4.93, up 0.6% from Monday’s close.

Read more: Carlyle renews interest in Australia’s Link with .1bn bid

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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