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Argentex Group PLC on Wednesday said it is in advanced talks with IFX (UK) Ltd on a possible takeover as it warned it requires an immediate cash injection to ensure solvency. The London-based currency risk management firm said it has unequivocally rejected other proposals from Lumon Acquisitions Ltd, which is a vehicle of Pollen Street Capital Ltd, and Terry Clune and Harry Adams. Argentex said there can be no certainty that IFX Payments will make a firm offer for the company. It said the potential offerors will be required to announce a firm intention to make an offer by May 20. On Tuesday, Argentex said trading in its shares has been suspended on London’s AIM market as it grapples with a sharp deterioration in its short-term liquidity position. Argentex said the volatility was triggered by a rapid devaluation of the US dollar against major currencies, driven in part by policy announcements from US President Donald Trump, including tariff measures and spending cuts. On Wednesday, Argentex said the liquidity position has deteriorated further and requires an immediate cash injection to ensure solvency. It said it is seeking to reach an agreement with IFX Payments on the terms of an initial bridging loan in addition to further liquidity support in the near term. Argentex said if a bridging loan is not agreed, then it will ‘take immediate steps to protect value in the business for the company’s creditors and other stakeholders’. Responding to the rejection of its liquidity proposal and possible offer, Lumon said it was ‘surprised and concerned’. ‘Lumon believes that the terms of the Lumon possible offer are highly compelling and offered certainty to Argentex and all of its internal and external stakeholders,’ the company said. Lumon said it is prepared to make a firm offer, subject to recommendation by Argentex’s board and receiving sufficient binding support from Argentex shareholders. ‘Lumon urges the Argentex board to resume work with Lumon without delay to fulfil these preconditions and to enable the Lumon possible offer to be implemented.’ Argentex shares were suspended at 42.68 pence prior to Tuesday’s initial announcement. The stock is down 7.2% over the past 12 months. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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