TORONTO 鈥� 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.聽
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.
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