CAB Payments Receives £241 Million Pound Cash Offer from Stonex

An American financial services group has made a cash offer of 241.4 million pounds for CAB Payments. This move may initiate a bidding war for the cross-border payments business. Stonex is proposing 95 pence per share for CAB, following the rejection of multiple bids from Helios Investment Partners, the largest shareholder in the company. Helios has expressed an interest in buying back CAB since its flotation on the London Stock Exchange at 335 pence per share in July 2023.

Directors at CAB Payments have dismissed Helios’ attempts thus far, stating that the offers fundamentally undervalue the company and its future potential for shareholders. Stonex has previously put forward an offer for CAB but the negotiations did not culminate in a deal. The firm has returned with a new proposal that it claims reflects an attractive valuation and a significant premium compared to Helios’ bid.

Shares of CAB Payments have witnessed an 82 per cent increase over the past year and rose by 13 per cent to 89 pence on Monday. In their statement, Stonex highlighted the complementary nature of both companies’ operations and envisions that a combination could establish them as a leading global specialist in emerging markets payments. They express confidence that they could serve as the best long-term owner and custodian of CAB, potentially unlocking further opportunities for key stakeholders.

The independent board of CAB, excluding directors associated with Helios’ shareholding, indicated that they are currently assessing Stonex’s offer with the assistance of financial and legal advisers. This evaluation will take into account the notable improvements in the company’s financial and operational performance, as well as ongoing engagement with shareholders.

Tracing its history back to the Crown Agents Office established in 1833, CAB Payments now provides cross-border payment and foreign exchange services in emerging markets. The company has faced a challenging start as a public entity, having issued several profit warnings and necessitating a management restructure.

Stonex’s earlier takeover approach in 2024 was abandoned after CAB Payments signalled that it would not meet revenue forecasts.