CAB Payments shares drop as Helios won't support StoneX bid

(Sharecast News) - Shares in CAB Payments dropped on Friday after major shareholder Helios Investment Partners said it would not support a takeover offer from rival bidder StoneX despite the recommendation from the board of British payment processing and foreign exchange business. On Thursday, it as revealed that StoneX had beefed up its previous approach from 95p to 110p per share, representing an offer price of £287m and a 29% premium to the bid made by a Helios consortium in March, which was abruptly rejected.

Helios, however, currently owns 114.6m shares in CAB Payments through Helios Fund III, representing a 45.11% stake.

The StoneX proposal is subject to the satisfaction or waiver of a number of pre-conditions, including the receipt by StoneX of an irrevocable undertaking from the Helios Consortium, CAB Payments said.

However, according to a statement by Helios's financial advisers, Rothschild & Co, the Helios consortium said it had "carefully evaluated the StoneX proposal and concluded that it will not provide such an irrevocable undertaking or otherwise support or accept the StoneX Proposal relating to a possible offer at a final price of 110 pence per share in cash".

After rising over 10% on Thursday to 96.50p, the stock was down 5.8% at 90.90p by 1533 BST.

On Thursday, following its response to the recommended StoneX offer, CAB Payments' board said it "encourages the Helios Consortium to engage constructively with the company and StoneX".

"The independent board believes [the StoneX offer] would be in the best interests of the company's shareholders as a whole, including minority shareholders," it said.

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