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(Sharecast News) - Shares in CAB Payments surged on Monday, after it received a rival takeover approach from US financial services firm StoneX Group.
The Nasdaq-listed business is proposing paying 95p per share in cash for the British emerging markets payments specialist. A 32% premium to CAB Payment's closing share price on 30 January, the unsolicited approach values the company at around 241m.
It is also an 11% premium to a rival bid from the Helios consortium, which saw its sweetened offer of 85p per share rejected by CAB Payments at the start of February.
CAB Payments said its independent board - which excludes Henry Obi and Nitin Kaul - was evaluating StoneX's unsolicited offer with advisers, and a further announcement would be made "when appropriate".
Obi and Kaul both represent Helios' interest. The Helios consortium is led by private equity firm Helios Investment Partners, which holds a 45.1% stake in CAB Payments.
As at 1000 GMT, the London-listed stock - which debuted at more than 330p less than three years ago - had rallied 14% at 89.10p.
The owner of Crown Agents Bank has endured a difficult time since its 2023 initial public offering, including warning on profits and cutting jobs. StoneX first made an approach for the business in November 2024 but ultimately walked away without making an offer.
StoneX said on Monday that any offer would be dependent on various factors, including the satisfactory completion of due diligence and irrevocable undertakings from CAB Payments' directors, the Helios consortium and investor Eurocomm Holding
Commenting on StoneX's latest approach, CAB Payments said that as part of the evaluation process, the board would take into account the "significant improvement in the company's financial and operational performance in the 2025 full year, and both the strategic and financial guidance provided to the market at the company's results".
It continued: "The company's relationship-led approach is winning and retaining clients, a core pillar of the company's future straight and further underpins the independent board's confidence in delivering attractive returns for shareholders."
CAB Payments posted adjusted earnings of 35m on revenues of 119m in the year to December end, up 12% and 14% respectively.
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