Stonex expresses interest in acquiring London-listed CAB Payments.
- Stonex’s proposal values CAB Payments at £368.5 million.
- Initial offer by StoneX in July was rejected by CAB Payments.
- CAB Payments faced significant share value decline post-IPO.
- Stonex has until 7 November to finalise its takeover offer.
The American financial services company, StoneX, has shown a keen interest in acquiring CAB Payments, a firm listed on the London Stock Exchange. The potential acquisition underscores StoneX’s strategic move to expand its footprint in the fintech sector, particularly within the European market.
StoneX’s non-binding proposal, which values CAB Payments at £368.5 million, translates to an offer of £1.45 per share. This revised offer follows an initial approach in July that proposed a valuation at £1.15 per share, which was subsequently turned down by CAB Payments’ board.
The board’s decision to review the new proposal reflects a cautious but open stance towards the acquisition, considering the company’s turbulent financial period. CAB Payments, which made its debut on the London Stock Exchange in 2023 with an initial public offering (IPO) valued at £851 million, has experienced a substantial drop in its share price by over 70% since October 2023. This decline was primarily due to lowered revenue projections and subsequent financial setbacks.
Following its IPO, CAB Payments encountered a leadership change, with CEO Bhairav Trivedi stepping down in February 2024, succeeded by Neeraj Kapur in June. The company has also made significant strategic moves, such as expanding into the European Economic Area, indicating its resilience and adaptability amid financial challenges.
StoneX is required to make a firm decision by 7 November, ensuring clarity on the potential transaction’s finality. As the situation progresses, it remains uncertain whether an official offer will materialise, highlighting the inherent uncertainties in large-scale acquisitions.
The potential acquisition of CAB Payments by StoneX remains uncertain, pending further developments and final decisions by the set deadline.
