StoneX Group said it does not intend to proceed with a bid for CAB Payments Holdings. The US-based financial services company raised its potential offer to 110 pence per share, up from 95 pence earlier. The CAB Payments board had indicated that it would “consider recommending” the higher proposal.
Singapore Summit: Meet the top APAC brokers you know (and those you don’t know yet!)
StoneX ends the chase after Helios refuses
The Helios consortium, which owns about 45% of CAB
Paymentsrefused to support the offer. StoneX said it was “disappointed” that Helios would not provide an irrevocable commitment or agree to uphold or accept its terms. According to Alliance News, without this support from its largest shareholders, StoneX chose to step down
Helios had previously made a firm offer of $1.15 per share for CAB payments. The consortium described its bid as the only “firm and deliverable” offer for the company. Its refusal to endorse StoneX’s higher-priced approach effectively blocked that path.
Following StoneX’s withdrawal, CAB Payments shares closed at 83.70 pence in London on Tuesday, down 0.4% on the day. The price is still below the level indicated by Helios’ offer and the 110 pence per share price floated by StoneX.
Continue reading: Forex.com owner StoneX adds cryptocurrency offering under MiCA license
StoneX’s interest in CAB Payments comes after a difficult period for the London-listed company, which has faced pressure since its IPO and attracted opportunistic bids as its share price lagged its float valuation.
Helios is sticking to its own proposal
CAB Payments is listed in London in 2023, with a focus on…
Cross-border payments to emerging and frontier markets, but the stock has struggled amid concerns about revenue volatility and regulatory risks in some of its key corridors.
StoneX has built a track record in deal making in recent years as it expands its commerce, payments and marketplace infrastructure. It has bought companies connected to its existing network, such as the precious metals recycling and refining arm of UK-based JBR Recovery, which it folded into its metals unit to secure more supplies and add refining capacity.
Alongside these moves into metals and payments, StoneX has used acquisitions to grow its capital markets and brokerage footprint. It agreed to purchase US financial brokerage firm The Benchmark Company to enhance its equity and debt capital markets, research services and investment banking services.
It has also targeted futures and clearing volume, including the acquisition of established futures broker RJ O’Brien, bringing more clients and trading volume to its platform.
This article was written by Jared Kirroy at www.financemagnates.com.
Source link
