Network International may recommend to its shareholders a £2 billion offer by a group of private equity investors.
Investors were told by the payments company that it would recommend the 387p per share offer, subject to further negotiations with CVC Capital Partners or Francisco Partners.
The FTSE group announced that it had rejected a few previous bids , but it would now allow the consortium to access the company for due diligence.
In morning trading, the company’s stock was up about a fifth at 361p. The shares have not risen above the offer price. This is a sign that investors don’t expect the deal to proceed.
Network, a payments processing company based in Dubai provides services to emerging markets across the Middle East and Africa. The company employs approximately 1,750 people and was founded in 1994 as the payments department of the state-owned lender Emirates NBD. The company is headed by Nandanmer, chief executive.
Network International released a statement saying: “The Board of Network has carefully analyzed the proposal, along with its financial advisors, in relation to the fundamental value and risks of Network. The board concluded that it would recommend the value of the proposal to Network shareholders.
Network, the largest technology flotation in the City since Worldpay’s listing on the London Stock Exchange for 435p per share in April 2019, was the biggest technology flotation since Worldpay.
ShadowFall, an investment fund, attacked the company in late 2020 after the pandemic prompted a decrease in spending in its key markets. ShadowFall expressed concerns when Network agreed to purchase DPO Group for 288 million dollars. The hedge fund discovered links between an ex-subsidiary of DPO Group and a former executive from the German payments company Wirecard.
Network has said that it did not find any wrongdoing, but the turmoil has affected the share price of the group.