CAB Payments potentially faces a significant shift with a proposed takeover by StoneX, a Nasdaq-listed entity.
- StoneX has presented a non-binding proposal valuing CAB Payments at £368.5m, subject to review.
- Initial attempts by StoneX were rebuffed, with the latest offer placed at £1.45 per share.
- CAB Payments, debuting on the London Stock Exchange last year, saw its value plummet shortly after.
- StoneX must finalise its intentions regarding the acquisition by 7 November.
CAB Payments is currently evaluating a potential acquisition proposal from StoneX, a firm listed on the Nasdaq stock exchange. The proposal is non-binding and values CAB Payments at £368.5m, offering £1.45 per share. This follows a series of earlier approaches by StoneX, which began in July with a lower offer of £1.15 per share that the board of CAB Payments rejected.
The financial situation of CAB Payments has seen volatility following its initial public offering (IPO) on the London Stock Exchange last year. Initially valued at £851m, the company experienced an over 70% drop in share value in October 2023, merely three months post-IPO due to reduced revenue expectations.
Since the IPO in July 2023, wherein CAB Payments raised approximately £335m, the company has undergone significant leadership changes. CEO Bhairav Trivedi resigned less than a year post-IPO, with Neeraj Kapur stepping into the role by June 2024. During this period, CAB Payments reported a 14% drop in pre-tax annual profits and expanded into the European market by securing a payment licence in the Netherlands.
StoneX, established in 1924, is a prominent American financial services company and was ranked 223rd on the Fortune 500 list in 2024. The company’s proposal does not yet constitute a formal offer and provides no assurance of a final bid. StoneX has a deadline until 7 November to declare its intentions, which leaves CAB Payments and its stakeholders anticipating potential strategic shifts.
The unfolding events surrounding CAB Payments and StoneX could mark a pivotal change in the fintech sector.
