StoneX Group, a US-based financial services company, has put forward a $480 million takeover bid for UK-listed CAB Payments. This marks the second time StoneX has approached the payment solutions provider, raising its offer from an earlier proposal that was turned down by CAB Payments’ board. The latest bid is set at 145 pence per share, offering an 18% premium over the current share price of 123 pence.
Background on the Bid
StoneX made its latest offer on September 23, according to a report from Dow Jones Newswires. This follows a previous attempt in July, when StoneX proposed a 115 pence per share offer, which CAB Payments rejected. The new proposal, which can be taken either in cash or shares, has yet to receive a formal response from CAB Payments. As per UK regulations, StoneX has until November 7 to finalize its proposal.
CAB Payments Considering the Offer
The offer comes at a critical time for CAB Payments, which went public on the London Stock Exchange in July 2023. Since its listing, the company’s stock price has experienced a sharp decline, falling by over 50% from its initial valuation. CAB Payments is now evaluating the latest proposal and exploring its strategic options.
StoneX’s Recent Partnerships and Performance
In addition to the bid for CAB Payments, StoneX has been actively expanding its global payment services. Earlier this year, StoneX Financial Ltd., a subsidiary of StoneX Group, partnered with NatWest Group PLC to enhance the bank’s cross-border payment capabilities. This collaboration will provide NatWest clients with access to better FX services and extend the bank’s payment reach across an additional ten currencies.
Despite facing a dip in net profit, StoneX reported strong revenue growth for the third quarter of 2024. The firm posted a total revenue of $27.1 billion for the three-month period ending June 2024, an 80% increase from the previous quarter. Operating revenues reached $913.7 million, up 18% compared to the same period last year, mainly driven by improved performance in FX trading and contracts for difference.
CAB Payments has yet to make a decision on the revised offer, and market watchers will be closely monitoring the developments leading up to the November 7 deadline.
