Over 82% of PEXA shareholders approve acquisition

The acquisition of online property exchange service PEXA by a consortium comprising of information solutions company Link Group, Commonwealth Bank (CBA) and Morgan Stanley Infrastructure has been approved by shareholders representing over 82 per cent of PEXA’s issued capital.

The update follows an announcement on 6 November regarding approval of the acquisition by 55.4 per cent of PEXA’s shareholders.

Remaining shareholders will be dragged by the consortium, pursuant to PEXA shareholders’ agreement, and can elect to receive cash consideration or scrip in the consortium’s acquisition vehicle.

The consortium, advised by JPMorgan, will pay an enterprise value of $1.6 billion, with Link Group’s interest in PEXA increasing from its current shareholding of 19.8 per cent to between 35.1 per cent and 44.2 per cent depending on remaining shareholders’ cash/scrip elections.

As part of the transaction, Commonwealth Bank said that it would inject an additional $50 million into PEXA, taking its total investment in the property exchange network to $100 million.

On completion of the acquisition, the major bank’s stake will increase from 13.1 per cent to about 16 per cent.

Commenting following the latest announcement, Link Group managing director John McMurtrie said: “Link Group is pleased that, alongside its consortium partners, it has been successful in acquiring PEXA.

“[PEXA chairman] Alan Cameron, [PEXA CEO] Marcus Price and the PEXA team have done an exceptional job of developing and delivering on the vision of an electronic conveyancing system for Australia.

“Since its initial investment in 2013, Link Group has supported PEXA and its achievements and we look forward to continuing to work with management as the PEXA roll-out continues.”

Completion of the acquisition remains subject to a range of conditions precedent which are expected to take approximately two months to meet.

[Related: Impending PEXA acquisition valued at $1.6bn]