Commonwealth Bank of Australia (CBA), alongside technology-enabled administration solutions provider Link Administration Holdings Limited and U.S. investment firm Morgan Stanley Infrastructure Partners Inc., submitted a bid which has now been accepted by shareholders holding a majority of electronic conveyancing solution provider Exchange Australia Limited (PEXA)’s shares.
The consortium will pay an enterprise value of up to approximately $1.6 billion, depending on the level of final acceptance to the trade sale offer received by PEXA’s shareholders.
CBA, which was already a key stakeholder in PEXA, said the transaction aligns with its strategy to focus on its core banking businesses and to create a simpler, better bank for its customers.
As part of the deal, which is subject to a number of conditions precedent, CBA will invest a further $50 million, totaling approximately $100 million invested in PEXA to date. This will result in an increase in CBA's ownership stake from 13.1 percent to approximately 16 percent.