Fresh setback for Woodford savers as Link sale is delayed
New setback for Woodford savers as Link’s sale to Irish rival Waystone is delayed
Thousands of investors waiting for compensation after Neil Woodford’s investment empire collapsed suffered another setback yesterday when a sale of the company overseeing the company was delayed.
Australia-based Link Group said last month it was in talks to sell its UK arm Link Fund Solutions (LFS), which oversaw the Woodford Equity Income fund, to Irish rival Waystone.
Proceeds will go towards compensating those who entrusted Woodford with their money, as well as a settlement with the Financial Conduct Authority, which has been investigating LFS.
Delayed deal: Australia-based Link Group said last month it was in exclusive talks to sell its UK arm Link Fund Solutions – which oversaw the Woodford Equity Income fund
The Financial Times reported that the deal was in doubt following the departure of three Waystone directors announced last week following a dispute over the company’s future strategy.
Link said yesterday that talks on the sale were continuing, but that it was “currently targeting April 2023 to be reached rather than March 2023.”
It added: ‘Although diligence and negotiations have taken longer than originally expected, significant progress has been made.
“Until binding agreements are signed, there can be no assurance that an agreement will be reached with Waystone or, in connection with the Settlement, with the FCA.”
Waystone said it “continued the period of exclusive negotiations with Link.” The Woodford fund, once worth more than £10bn, collapsed in 2019, leaving hundreds of thousands.
Woodford invested in risky stocks and couldn’t sell them fast enough to get the money back.