|
CAB Payments Holdings PLC on Monday rejected an increased possible offer by the Helios consortium. The London-based payment processing and foreign exchange provider described the proposals as ‘highly opportunistic’, adding that they ‘fundamentally undervalue’ CAB and its future prospects. The company added that the proposals did not reflect its ‘strong’ total income performance it announced in mid-January, when it said total income is expected to be around £119 million for 2025, up 12% from £106.4 million in 2024 and 8.1% higher than a cited market consensus average of £110.1 million. The figure would be 5.7% higher than the upper end market expectation of £112.6 million. Furthermore, back then CAB said adjusted earnings before interest, tax, depreciation and amortisation would be slightly above the range of consensus, which is between £28.3 million and £33.8 million for 2025, compared to £30.8 million in 2024. ‘This performance reflects the successful execution of a strategy built on deepening the group’s presence in key markets and strengthening central bank and regulatory relationships; an approach that underpins the resilience and sustainability of the business. Increased transaction volumes, an expanded client base, and new product capabilities have all contributed to growth,’ CAB said at the time. CAB on Monday said that it will release its 2025 results on March 5. Further, CAB on Monday said the proposals did not reflect the strengthening of its operating platform and regulatory infrastructure via the establishment of a new global clearing partnership with a ‘leading’ global bank, among others. Last week Thursday, CAB said that its Middle Eastern subsidiary CAB Global Markets secured a Category 2 Financial Services permission from the Financial Services Regulatory Authority of the Abu Dhabi Global Market. Separately, it announced it secured a ‘significant’ new global clearing partnership with a ‘leading global bank.’ The consortium that announced the increased possible offer comprises Helios Fund V and Helios Fairfax Partners. It holds, controls, or has received a letter of support for the increased possible offer for just over 50% of shares in CAB Payments, a London-based payment processing and foreign exchange provider. Under the increased possible offer, CAB shareholders would receive $1.15 in cash per share. Should a firm offer be made, the consortium would also make a partial unlisted share alternative available. It is a 9.5% increase from a $1.05 possible offer by the consortium that CAB had rejected in January. CAB shares rose 8.0% to 78.00 pence each on Monday afternoon in London, around $1.06, giving it a market capitalisation of £198.2 million, around $271.2 million. The consortium must announce a firm intention to make an offer or that it does not intend to make an offer by the end of March 2. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
