UPDATE: Australia's ASX Mulls A$1.4 Billion Buy Of Link From PEP

Australia's main exchange operator is considering buying share registry Link Market Services from Pacific Equity Partners in what could be Asia's biggest sale of a private-equity stake so far this year.

ASX Ltd. (ASX.AU) said in a statement Friday it has signed a confidentiality agreement ahead of a possible acquisition of part of Link Group Network from leading Australian private-equity firm Pacific Equity Partners in a deal that could be worth up to 1.4 billion Australian dollars ($1.36 billion), according to Reuters.

The size of the possible acquisition has also attracted interest from international private-equity funds including Bain Capital, Blackstone Group, Carlyle Group, U.S.-based Hellman & Friedman, and KKR & Co., none of whom had any immediate comment on the matter.

PEP, which has hired Goldman Sachs to advise on the deal, bought Link from ASX seven years ago. Since then, Link has made around 20 acquisitions, including buying American Stock Transfer & Trust Co. and bringing its account base to more than 10 million across Australia.

Link Group Network is now seeking a strategic investment partner to inject new capital into the business in order to further expand its global footprint, both organically and via acquisitions.

At one point there was speculation PEP was considering an initial public offering for Link but decided instead to sell it owing to weak equity markets.

ASX company secretary Amanda Harkness said ASX signed a confidentiality agreement to allow negotiations ahead of a possible formal trade sale process by Goldman Sachs. But she added that there was "no certainty that ASX will participate in a transaction or that any negotiations or due diligence that could result in a transaction will be undertaken by ASX."

ASX shares ended the day down 0.2% at A$29.39 while the S&P/ASX 200 index was down 0.3%.

-By Caroline Henshaw, Dow Jones Newswires; +61-2-8272-4689; caroline.henshaw@dowjones.com

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