10th Oct 2024 21:33
(Alliance News) - CAB Payments Holdings PLC on Thursday said it was considering a possible bid approach from Stonex Group Inc.
The London-based payment processing and foreign exchange company said the cash proposal from StoneX, an American financial services company, was worth 145 pence per share. At that level, the offer would value CAB Payments at just under GBP370 million.
On Thursday, shares in CAB Payments closed 7.0% higher at 123.00 pence each, giving the firm a market value of GBP313 million.
The firm listed in July of last year and shares sit 63% off the 335p initial public offering price.
CAB Payments said it is "evaluating" the possible offer, which was made on September 23, together with its financial and legal advisers, and a further announcement will be made as and when appropriate.
The firm said the possible offer from StoneX follows a series of approaches since the end of July, the first of which was at a price of 115p per share.
CAB Payments concluded the earlier proposals were not in the best interests of the company and its shareholders.
In September the firm announced a "renewed focus on strategic execution" to boost dwindling profit.
The London-based payment processing and foreign exchange company said the plan will see it "continue to develop the network across African markets" but also build relationships in new regions including the Middle East and Latin America.
By Jeremy Cutler, Alliance News reporter
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