The NZX has sold off its 50% stake in Link Market Services NZ for $9.5 million (NZ$13.8 million), ending a decade-long joint venture partnership, according to a NZX statement.
Link Market Services of Australia is a member of the Link Group and will purchase the remaining 50% shareholding rights to Link Market Services (Link NZ), New Zealand’s largest provider of share registry services – the New Zealand entity boasts 12 of the S&P/NZX 20 issuers as clients.
The overall purchase price of the 50% of shareholding rights in Link NZ constitutes an initial payment of $9.5 million with an additional $309,700 (NZ$450,000) payable to the NZX within a timetable of 12 months, pending Link NZ’s financial performance over this accompanying period. The transaction itself is slated for effect at month’s end on June 30, 2015.
According to NZX CEO Tim Bennett in a recent statement on the sale, “Link NZ is now a well-established, valuable part of New Zealand’s capital markets infrastructure, and this is an appropriate time for Link Group to take full ownership of the business and support its future growth.
NZX is committed to investing in and growing areas of the capital markets that are undeveloped and where we see value, with the benefits accruing to both the market and our shareholders. This was the case in share registry services when we invested in Link NZ 10 years ago.”
“The sale of our stake in Link NZ ensures NZX is now well positioned to take advantage of other opportunities to invest in the development of New Zealand’s markets infrastructure – this potentially includes NZClear, which is currently being divested by the Reserve Bank of New Zealand,” Mr. Bennett noted.
“We are 100% committed to supporting Link NZ as it continues to provide valuable, high quality services to the New Zealand market. Link NZ is poised to enter an exciting new phase of development with the launch of fund services – this is a core competency of Link Group and we look forward to supporting Link NZ’s plans on this front,” added Link Group Managing Director John McMurtrie in an accompanying statement.
(Photo: Wikimedia Commons)