CAB Payments Holdings PLC saw its London-listed shares rise 12.9% on Monday after StoneX Group made a formal approach to CAB Payments' board with an all-cash proposal, the buyer stated.
StoneX said it submitted an offer valuing CAB Payments at 95 pence per share. That price equates to a 32% premium over CAB Payments' undisturbed closing price of 72 pence on January 30, and is 11% above the Helios Consortium's firm offer of 85 pence per share, which was announced on March 2.
In its announcement, StoneX highlighted what it described as strategic complementarity between CAB Payments and its existing payments business. The company said combining the two operations could create a specialist focused on payments in emerging markets, and that it believes it is the best long-term owner for CAB Payments.
However, StoneX made clear that its statement does not amount to a firm intention to make an offer under Rule 2.7 of the Code. The release listed several pre-conditions that must be satisfied before a firm intention will be declared. Among those are the satisfactory completion of due diligence, a unanimous and unconditional recommendation from CAB Payments' board, and the receipt of hard irrevocable undertakings from CAB Payments directors, the Helios Consortium, and Eurocomm Holding Limited.
The announcement also noted that StoneX retains flexibility around the proposed transaction structure. It said it may waive any of the stated pre-conditions, change the form of consideration, or substitute other forms of consideration for all or part of the cash figure. StoneX also reserves the right to proceed with an offer on less favourable terms in certain circumstances, including with the consent of CAB Payments' board or following the announcement of a third-party firm offer.
StoneX emphasised that there is no certainty an offer will be made, even if the pre-conditions are satisfied or waived. The firm reiterated that the Panel on Takeovers and Mergers will set the deadline by which StoneX must either announce a firm intention to make an offer or confirm that it does not intend to do so.
The market reaction to the approach was positive for CAB Payments' stock on Monday, reflected in the 12.9% uptick noted in the announcement. Beyond the immediate share-price movement, the statement outlines a process with several conditional steps and potential variations in the structure or terms of any eventual offer.
Sector focus: The development is directly relevant to the payments and broader financial services sectors, and could have implications for companies operating in emerging markets payments should a transaction proceed.