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.