EML agrees to pay $28.8m to settle PFS loan liabilities

The news: EML Payments has agreed to pay $28.8 million to settle all outstanding loan liabilities related to its acquisition of Prepaid Financial Services Group (PFS) in 2020.

The numbers: EML said the agreement represents a $15.2 million, or 35%, reduction to the total value of the loan note liability if paid at face value, plus interest by the specified instalment date.

Shares in EML were up 2.5% to $1.06 by 10:30am AEDT.

The context: The payment services group bought UK-based PFS in 2020. However, EML announced that it would exit the company's Irish arm, PFS Card Services Ireland, earlier this year after what the company described as "a period of significant earnings losses, cash burn and management distraction" from operating the subsidiary.

EML shares jumped last month after the Brisbane-based company agreed to sell its unprofitable Sentenial payment business in Europe to rival fintech GoCardless.