NZX
26/06/2015 08:30
ASSET
PRICE SENSITIVE
REL: 0830 HRS NZX Limited
ASSET: NZX: NZX sells its 50% stake in Link Market Services NZ
After more than 10 years in a successful joint venture partnership, NZX today
announces that its partner Link Market Services of Australia, a member of the
Link Group, will purchase NZX's 50% shareholding in Link Market Services
(Link NZ). Link NZ is New Zealand's leading provider of share registry
services, with 12 of the S&P/NZX 20 issuers as clients.
The purchase price is an initial payment of NZ$13.8 million with an
additional NZ$450,000 to be paid to NZX in 12 months time depending on Link
NZ's financial performance over that period. The transaction will be
effective on 30 June 2015.
NZX CEO Tim Bennett commented: "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."
Link Group Managing Director John McMurtrie commented: "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."
It will remain business as usual at Link NZ with no changes to staff or the
services it provides to clients.
Apteryx investment
In addition to the Link NZ divestment, NZX also announces today that it has
entered into a non-binding heads of agreement to acquire 100% of Apteryx, a
business that delivers rich online functionality to enable New Zealand
investment advisers and providers to efficiently manage, trade and administer
their clients' portfolios.
The purchase price for Apteryx is confidential. NZX does not expect the
business will have a material impact on earnings in 2015 or 2016.
Tim Bennett commented: "The Apteryx platform that we are acquiring has the
potential to be developed into a core industry utility with a goal of
improving effectiveness and efficiency within the New Zealand market, while
at the same time providing medium-term growth potential for our
shareholders."
As at 31 March 2015, Apteryx had annual revenues of approximately $1.2
million and more than $1 billion of funds administered on the platform.
For further information please contact:
Kate McLaughlin
Corporate Communications
T: 09 309 3654
M: 027 533 4529
E: [email protected]
About NZX Limited
NZX builds and operates capital, risk and commodity markets and the
infrastructure required to support them. We provide high quality information,
data and tools to support business decision making. We aim to make a
meaningful difference to wealth creation for our shareholders and the
individuals, businesses and economies in which we operate. To learn more
about NZX please visit: www.nzxgroup.com
About Link Group
Link Group administers financial ownership data and drives user engagement
through technology. Underpinned by our investment in technology, people and
processes, we deliver a complete solution for companies, large asset owners
and trustees across the globe.
We are a market leading global financial technology company, continually
developing our offerings to expand with our clients' needs. Our core
business, which consists of fund administration, securities registration and
property services, is complemented by our digital, data analytics and
information expertise. Our clients represent all industries, and include some
of Australia's largest superannuation funds and the world's largest
corporations.
For more information please visit: www.linkgroup.com
End CA:00266180 For:NZX Type:ASSET Time:2015-06-26 08:31:12
