LNK has a $420m shareholder loan to PEXA. PEXA could allocate...

LNK has a $420m shareholder loan to PEXA.
PEXA could allocate more shares to LNK, pre-IPO, to fully or partly discharge the loan.
If half of the shareholder loan is repaid through the issuance of shares, PEXA will become a subsidiary of LNK.

(see Note on Events Subsequent to Reporting Date in the Directors Report located page 63 of the LNK Audited Financial Statements for the year ended 30 June 2020 lodged with ASX 0n 27/8/2020 at 8.36am reproduced below)

Events Subsequent to Reporting Date
PEXA capital return
In July 2020, Torrens Group Holding’s Board (i.e. the PEXA Holdco Board) approved a $950 million capital return financed by shareholder debt (Link Group’s 44.2% share is approximately $420 million). This will result in a loan receivable being recognised by Link Group in FY2021 (and corresponding reduction in the value of its equity accounted investment). Interest income will accrue on the loan (offsetting the interest expense Torrens Group will recognise).
Torrens Group is expected to commence refinancing its debt in FY2021 such that it will raise the first tranche external debt in order to repay shareholder debt, presently scheduled to be completed by the end of the 2020 calendar year.


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