StoneX, a US-based financial services company, made an unsolicited $480 million takeover bid for UK-listed CAB Payments just months after its public listing. The proposal represents a significant premium to CAB Payments’ current share price.
StoneX’s Pursues CAB Payments
CAB Payments, which focuses in payment and trading
services, received the latest offer from StoneX on September 23, Dow Jones
Newswires reported. This wasn’t the first approach from the US firm.
Previously, StoneX proposed a deal in late July,
valuing CAB Payments at 115 pence per share, an offer that was swiftly
declined. However, the latest revised bid, set at 145 pence per share in cash
or shares, represents an 18% premium over CAB Payments’ current stock price of
123 pence.
CAB Payments is reportedly reviewing the proposal and
assessing its options before deciding the next step. The company is expected to
make a decision soon, as under UK takeover laws, StoneX has until November 7
to formalize its offer.
CAB Payments Listing
The proposal comes at a pivotal time for CAB Payments,
which was listed on the London Stock Exchange in July 2023. Since then, the
fintech’s share price has reportedly dropped by more than half. In April, StoneX Financial Ltd, a subsidiary of StoneX
Group Inc., collaborated with NatWest Group PLC. This partnership seeks to
boost NatWest’s global payment capabilities by offering clients better
cross-border FX services.
StoneX Payments, the company’s payments division, will
provide NatWest with third-party delivery and international FX payment
services. The agreement will facilitate cross-border payments and extend the
bank’s local payment reach across an additional ten currencies.
Meanwhile, StoneX Group posted a significant boost in
in revenue for the third quarter of fiscal year 2024, despite net profit
declining by 11%. Income from FX trading and contracts for difference rebounded
nearly 6%.
The financial service company registered a total
revenue of $27.1 billion for the three-month period ending June 2024, an 80%
jump from the previous quarter. Operating revenues expanded to $913.7 million,
an 18% boost from the same period last year.
This article was written by Jared Kirui at www.financemagnates.com.
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