Payments provider Network International said it had received a takeover proposal from a consortium of private equity firms CVC Capital and Francisco Partners, valuing it at about 2.1 billion pounds ($2.56 billion).
Shares in the London-listed company rose as much as 23% to 370 pence, below the possible offer price of 387 pence per share, indicating that some shareholders do not expect the deal to go through.
The proposed price was at a premium of nearly 28% to Network’s last closing price.
“We talked to several Network shareholders over recent days suggesting an above 400p offer to be acceptable,” Jefferies analysts wrote in a note.
The new proposal, the latest “after a series of prior ones were rejected”, could be recommended by the board if the consortium, consisting of French and American private equity firms, made a firm offer by May 11, Network said.
Network received approaches from several suitors in recent months, including CVC, people familiar with the matter told Reuters last week, but the company has not confirmed who the other suitors were.
Network said on Monday that its board had agreed to provide the CVC Capital and Francisco Partners consortium access to confirmatory due diligence.
Network International, the largest payment processing firm across the Middle East and Africa, listed in London in April 2019 at an initial public offering price of 435 pence a share.
Its shares had a strong run before plummeting in 2020 as investors became concerned about its acquisition of African rival DPO Group.
Investors had doubts over DPO Group’s unit AconaOnline, which was bought by a former executive at Wirecard – the German payments giant that imploded in 2020 due to an accounting scandal.
Network International was founded in 1994 as a subsidiary of Emirates Bank. Its top investors include Capital Research, Mastercard UK and Wellington Management.
The company processed more than $42 billion in total processed volumes for more than 150,000 merchants in 2021, according to its website.
Source: Reuters.com