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Pexa boss not concerned by Link takeover collapse

Pexa boss not concerned by Link takeover collapse
Pexa group chief executive, Glenn King

The chief executive of digital remortgaging platform Pexa has said he does not see any scenario relating to the takeover of its major shareholder Link being negative for the firm.

Link Group, which owns a 43 per cent stake in the Australian fintech firm, saw a takeover bid by Dye & Durham collapse last week, after the Financial Conduct Authority warned that one of Link’s subsidiaries may be liable for a £50mn fine over its management of the Woodford Equity Income Fund.

Speaking to FTAdviser, Pexa Group chief executive, Glenn King said while he cannot comment on the Link and Dye & Durham deal, he would say that Link has been “a very good shareholder of the Pexa Group".

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Before the Link and Dye & Durham deal collapsed, the FCA issued a draft warning notice fining Link Fund Solutions, a subsidiary of Link, £50mn following an investigation into its handling of the Woodford fund. This was in addition to the £306mn in redress it previously said Link would be liable for.

The FCA had warned Dye & Durham that its approval of the takeover was conditional on D&D’s ability to make up any shortfall in Link Group’s ability to pay any redress imposed.

“It looks like that deal is not going to go forward. What does that mean for the Pexa group? Well, I think that will play out in terms of how Link actually wants to move forward on these shareholdings in the Pexa Group. I don't see either, or multi scenarios being negative for Pexa Group,” King said.

“Pexa is a growth stock that has a lot of investors who want to invest in it. So I think if anything, it just allows other investors to get into Pexa stock if Link decides to progress in a different way,” he added. 

At the moment, Pexa is in the midst of launching its offering in the UK, first beginning with England and Wales with the ambition of helping to centralise the property remortgage and completion process.

The platform said it will enable a "streamlined and digitised remortgaging process for UK consumers"- reducing associated time, risk and costs, while also providing an improved customer experience.

“It is a very unique digital tech company. There's nothing else like it in the world,” King told FTAdviser. 

It enters the UK market having facilitated over 11mn property transactions in Australia worth circa AUD $2trn (£1.16trn).

Last month, it was announced that Hinckley & Rugby Building Society and Shawbrook Bank would be the first two lenders to begin transacting remortgages digitally via the platform

The announcement followed successful testing of the firm’s Pexa Pay system earlier this year and more recently, the firm announced that it is in the process of acquiring Optima Legal, the specialist property law firm based in Leeds. 

“We decided to acquire Optima Legal for a couple of reasons,” King said.