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 on 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.
