Link Group and its partners, including Commonwealth Bank of Australia and Morgan Stanley Infrastructure, have announced their final bid for PEXA has been accepted.
Link, which already owns 30 per cent of PEXA, initially made a bid earlier in the year which was knocked back due to PEXA’s plans to list on the Australian Stock Exchange.
However, the company was unable to gain support for the IPO, which would have valued PEXA between $1.88 billion and $2.18 billion.
The bid from Link was officially signed by PEXA shareholders on Monday, having initially been lodged on 8 October and increased on 5 November.
CBA will be investing $50 million into PEXA and increasing the equity stake in the business from 13.1 per cent to 16 per cent.
In an announcement on the ASX, CBA CEO Matt Comyn said, “Having been a key stakeholder in PEXA since its inception in 2011, today’s announcement represents our continued commitment to support the property industry as it transitions towards an innovative, fully digital, settlements process that aims to provide improved experiences for customers.”
Six investors have agreed to sell to the consortium, but it remains unclear if the major shareholders, Macquarie Capital and Namarong Investments, will sell. The Victorian government, which owns 7.5 per cent, is in caretaker mode due to the November 24 state election, but both the NSW and Queensland governments have opted to sell.
Shareholders have until Friday to decide if they will sell into the offer.
The additional input of funds from the deal will further enable PEXA’s growth in the econveyancing space, making it harder for rival platforms to challenge the leader.
The closest rival currently is Sympli which is currently seeking regulatory approval and is on track to be approved by the end of the year.