9th Jun 2025 13:03
(Alliance News) - Argentex Group PLC on Monday confirmed it has rejected a proposal from Lavide Holding NV, saying the approach does not represent an offer for the full company and falls well short of the funding it needs to continue trading.
The London-based currency risk management firm said it received a "highly preliminary non-binding proposal" from Lavide, a Netherlands-based financial holding company, on June 6.
The proposal involved Lavide acquiring a 50% equity stake in Argentex for GBP2.5 million via newly issued shares, alongside a potential GBP15 million credit facility.
Argentex said its board unanimously rejected the offer, stressing that it was not a full takeover and that the proposed investment is materially below the level of funding required.
The company noted that Lavide's proposal offers less support than an existing package from IFX (UK) Ltd, a London-headquartered global fintech company trading as IFX Payments, which includes a GBP3 million cash offer and a GBP6.5 million bridging loan.
Shares in Argentex were trading 8.8% higher at 2.67 pence about one hour after the announcement was made at midday on Monday in London.
The board also clarified that contrary to media speculation, the approach was made by Lavide, not Haerlem Capital BV.
Argentex has been in urgent need of capital following a liquidity crisis in April triggered by margin calls on its forward and options trading books, which followed heightened foreign exchange market volatility.
It has since become the subject of takeover interest, but recent weeks have seen suitors fall away.
On May 30, Lumon Acquisitions Ltd, as well as former CEO Harry Adams and fintech entrepreneur Terry Clune, withdrew their interest.
IFX Payments remains the only live bidder for Argentex, with its 2.49 pence per share offer supported by shareholders representing 58% of the company's shares.
Argentex's chair has previously described the IFX proposal as "fair and reasonable" and sufficient to stabilise the business.
The company had previously said: "Argentex has been exposed to significant volatility in foreign exchange rates, particularly in relation to the rapid devaluing of the US dollar against other major benchmark currencies, which has been precipitated by the various recent announcements from President Trump regarding tariff policies and US government spending cuts."
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Argentex Group.