21st Apr 2023 08:40
(Alliance News) - Network International Holdings PLC on Friday confirmed that it has received another takeover offer, this time from Brookfield Asset Management Ltd.
The Middle East and Africa-focused payments provider has a market capitalisation of GBP2.13 billion.
It said that it offer is a "highly preliminary, non-binding proposal".
Network International said the offer is for 400 pence per share. This is an 11% premium to its closing price of 360.00p on Thursday.
The stock was trading up 11% at 400.00p early Friday in London. Over the past 12-months the stock is up 58%.
Brookfield is now required to make an offer by May 19.
"There can be no certainty that an offer will be made by Brookfield, nor as to the terms on which any offer might be made," Network International said.
It added that is evaluating the Brookfield offer with its financial advisers and said a further statement will be made in due course.
On Monday, Network International confirmed that it has received a non-binding takeover proposal from a private equity consortium.
It said it received a "non-binding" takeover proposal from CVC Advisers Ltd and Francisco Partners Management Ltd.
The consortium offered to pay 387p per Network International share. This was a 58% premium to the company's shares closing price of 244.40p on Wednesday, being the last business day before the first announcement was made.
The consortium has until the close of play on May 11 to announce when or not it plans to make a firm offer.
Takeovers have dominated company news in the past week.
On Monday, fellow FTSE 250 constituent John Wood Group PLC announced it was engaging with Apollo Management about its final takeover proposal of 240p per share. Apollo had announced the fifth proposal in early April.
Prior to this, Dechra Pharmaceuticals PLC had surged some 40% last Friday, as it confirmed it had entered discussions about a possible offer from private equity firm EQT.
Moving away from Network International's takeover battle, the company also posted a positive trading update on Tuesday.
It backed its guidance for 2023, reporting a 13% annual rise in revenue during the first quarter. In 2022, revenue was USD438.4 million.
The company reiterated annual guidance of high-teens constant-currency revenue growth, and a slight margin expansion to earnings before interest, tax, depreciation and amortisation. For 2022, Network International reported an underlying Ebitda of USD178.6 million.
On Tuesday, Chief Executive Officer Nandan Mer said: "We have seen a solid start to the year. This demonstrates economic strength across key markets, supported by the accelerated transition from cash to digital payments and continued successful strategic execution of our growth-oriented strategy. Merchant Services performance remains very strong, with trends reflecting buoyant UAE consumer spending and the region's attractiveness to international visitors."
By Sophie Rose; Alliance News reporter
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