Australia's Tyro Payments offers suitor Potentia access to books after rejecting $A875 million bid
Adds detail
By Scott Murdoch and Himanshi Akhand
Jan 27 (Reuters) -Australia's Tyro Payments TYR.AX has opened the door to re-engaging withPotentia Capital by offering it due diligence after the payments terminal firm rejectedthe private equity group'sA$875 million ($593 million) buyout proposal last month.
Tyro stock shot up nearly 6% to A$1.58 on Friday after Tyro said it would allow Potentia four weeks' access to its books.
The due diligence will enable Potentia "to develop a significantly improved proposal and confirm the necessary funding commitments attached to any possible future offer," Tyro said.
Tyro said offering due diligence would not necessarily result in a transaction. Potentia declined to comment.
Potentia first offered to buy Tyro for A$1.27 per share in September, then improved its offer to A$1.60 in December.
Tyro rejected both offers, saying they undervalued the company. Its decision to knock back the A$1.60 offer sent the stock tumbling 22%.
Australian tech entrepreneur Mike Cannon-Brooke's Grok Ventures is the largest shareholder in Tyro and has backed Potentia's offer at $A1.60.
As part of the previous bid, Grok had said it would support Potentia unless a separate bid above $A1.85 emerged for Tyro.
Potentia offered Tyro shareholders in December all cash at $A1.60, cash and scrip, or shares in an unlisted private Potentia company that would own the payments firm.
Westpac Banking Corp WBC.AX, one of Australia's largest retail banks, withdrew its interest in Tyro in mid-December, leaving Potentia as the only confirmed interested buyer.
Reporting by Scott Murdoch in Sydney and Himanshi Akhand in Bengaluru; Editing by Sriraj Kalluvila and Gerry Doyle
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
