The US financial services firm StoneX is considering a takeover of London-listed CAB Payments, which could lead to the latter delisting from the stock exchange.
- CAB Payments received a non-binding proposal from StoneX, initially valuing the company at £1.15 per share, which was later increased to £1.45 per share.
- CAB Payments’ board, who previously rejected the initial offer, is now reviewing the revised proposal, as shares have plummeted by over 70% since its IPO.
- Despite receiving this proposal, StoneX has not made a formal offer and has until 7 November to make one or to announce its intent not to proceed.
- This development comes after CAB Payments’ expansion into Europe and follow changes in its executive leadership.
The US firm StoneX has proposed a takeover of the fintech group CAB Payments, potentially resulting in the company’s delisting from the London Stock Exchange. CAB Payments reported receiving a non-binding proposal from StoneX, a company listed on the Nasdaq, offering £1.45 per share and valuing the enterprise at approximately £368.5 million. Initially, StoneX approached CAB Payments in July with a proposed share price of £1.15, a value which was subsequently dismissed by the CAB Payments board.
The revised proposal is currently under review by the CAB Payments board despite the absence of a guaranteed formal offer. StoneX has been granted until 7 November to decide on making a definite offer or to announce the cessation of its interests. It is critical to note that the proposal remains non-binding, indicating it is not yet an official offer.
Having listed in London last year, CAB Payments was initially valued at £851 million during its IPO, which was a significant boost for the exchange during a year that saw few tech listings. However, the company has faced challenges, notably a severe decline in share prices, dropping over 70% just three months post-IPO following lower-than-expected revenue forecasts.
Compounding these challenges, CAB Payments experienced a leadership change with CEO Bhairav Trivedi resigning less than a year after the IPO, in February 2024. Subsequently, Neeraj Kapur was appointed as the new chief executive officer in June.
Despite these hurdles, CAB Payments has been proactive in expanding its operations. In April, the company managed to secure a payment service provider licence from Dutch regulators, enabling its expansion throughout the European Economic Area. This strategic move underscores CAB Payments’ commitment to broadening its operational footprint irrespective of ongoing acquisition talks.
The potential takeover of CAB Payments by StoneX remains uncertain, hinging on the latter’s decision on making a firm offer by early November.
