Smartpay shares soar, Tyro withdraws takeover bid
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The news: Payments provider Tyro has pulled out of the race to acquire rival Smartpay after the target company entered exclusive talks with a rival suitor.
The numbers: Tyro said it was informed of Smartpay’s exclusive arrangement with another party for a NZD1.20 ($1.12) per share offer. That trumps Tyro’s offer in March to buy 100% of Smartpay's shares for NZD1 (90 cents) a share, which valued Smartpay at around $218 million.
Smartpay’s ASX-listed shares surged on the news, adding more than 22% to 93 cents a share. Tyro shares are unchanged at 77.5 cents.
The context: Earlier, Smartpay said in a statement it had entered into an exclusive arrangement with another unnamed “international strategic”. Tyro separately confirmed it is no longer participating in an acquisition process with Smartpay, after earlier submitting a proposal and conducting due diligence as part of a competitive process.
