U.K. Regulator Says Dye & Durham May Be Responsible for Covering Link Group Assets Shortfall

By Adriano Marchese

Dye & Durham Ltd. may have to cover a shortfall of up to 306 million pounds ($354.6 million) in the value of assets of a company belonging to acquisition target Link Administration Holdings Ltd. to get regulatory approval in the U.K.

The Financial Conduct Authority said it won't approve the acquisition of Link Group if Dye & Durham doesn't undertake to cover any shortfall in the value of assets of Link Fund Solutions Ltd., the company said on Monday.

The FCA said it may levy on LFS up to GBP306 million for restitution or redress payments relating to a fund it managed called LF Woodford Equity and Income Fund.

The Woodford fund was a GBP3 billion investment fund that collapsed in 2019 after it failed to repay its investors, which the FCA later investigated.

However, Dye & Durham said that Link Group disclosed that no provision for contingent liability has been made regarding the Woodford Fund matters in its audited financial release in August of this year.

The company said it is currently assessing the effects of what the conditions could mean for the proposed acquisition of Link Group, but noted that if it isn't able to accept the FCA's condition, it won't be able to go through with the proposed transaction.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 12, 2022 10:40 ET (14:40 GMT)

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