Smartpay shares surge 45% on takeover interest
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More news: Smartpay shares climbed more than 45% at market open after the EFTPOS machine provider confirmed it has received two separate takeover offers.
Smartpay shares were up 45.3% to 77 cents at 10:50am AEDT, having retreated by more than 60% over the last 12 months.
Rival operator Tyro Payments, one of Smartpay's two suitors, saw its shares rise 2.7% to 75 cents.
Smartpay confirms $218m takeover bid by Tyro Payments
The news: EFTPOS machine provider Smartpay has confirmed that it has received two separate takeover offers — one made by by rival operator Tyro Payments and another by an unnamed international buyer.
The numbers: Tyro has offered to buy 100% of Smartpay's shares for NZD1 (90 cents) per share, comprising a majority of Tyro shares as well as cash consideration. The bid values Smartpay at around $217.7 million.
The company, listed on both the ASX and NZX, said the proposal from the other party is also for 100% of its shares, but did not reveal the offer.
Smartpay's ASX shares last closed at 53 cents per share.
The context: Smartpay said that both proposals are preliminary and "highly conditional".
As part of its review of the offers, the Smartpay board has granted both suitors an initial limited period of commercial due diligence on a non-exclusive basis.
Reciprocal due diligence will be conducted by Smartpay on Tyro, the company said, as the majority of the proposal is through the issue of Tyro shares.
Smartpay's announcement follows a report in the Financial Review on Sunday, which noted the two offers follow a 61% fall in the company's share price over the last 12 months, after the Reserve Bank said it was considering restrictions on fees that payment providers get for processing debit-card transactions.
