0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve invested in our content to provide more news, analysis, features, interviews and opinions across a wide range of Credit and Financial Services. Register now to access more of the trustworthy, insightful information that’s on offer.

Register now or Login

Link Group decides to exit PES acquisition from Pepper

The sale of Pepper Group’s European loan servicing business (PES) to Link Group will not proceed, it has been announced today.

Share on LinkedInShare on TwittereCard

The sale, originally announced in January 2020, was supposed to be for an upfront cash payment of €165m but it will not go ahead due to Link Group’s own decision.

 

Link, based in Australia, exercised its right not to complete the deal, after a sale agreement date expired on 31 January and no extension was sought. Link had also been a takeover target itself and is in the process of selling one of its own businesses. 

 

According to Pepper, on an analyst call last night, Link highlighted that the world has changed and that it can now preserve capital. Link also stated on the call that the regulatory process has been challenging and that cancelling the transaction aligns with its "balance sheet management agenda". 

 

In a statement posted on the Australia Securities Exchange, Link Group chief executive Vivek Bhatia said: “The Link Group business is resilient with strong foundations. We have a clear strategic focus to simplify the business, deliver the global transformation programme and maintain a strong balance sheet. As a result of the termination of the PES transaction, we will preserve the capital for future growth opportunities."

 

Pepper has no immediate plans to re-instigate the sale process of PES. Mike Culhane, chief executive of Pepper Group, said: “PES had its strongest year ever in 2020. Against this backdrop, and having assessed the options, the board believes focussing on the ongoing growth of the business in the near future is in the best interest of the business, its people, customers or shareholders.” 

 

In Q3 and Q4 of 2020, PES took on 12 new portfolio mandates, with eight new clients adding over €5bn to its assets under management. 

 

 

Share on LinkedInShare on TwittereCard
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

KPMG to sell its UK restructuring practice

KPMG to sell its UK restructuring practice

Budget 2021: Firms welcome war chest to tackle furlough fraud

Budget 2021: Firms welcome war chest to tackle furlough fraud

SMEs offered flexibility to extend bounce back loans to 10 years

SMEs offered flexibility to extend bounce back loans to 10 years

Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group