Network International suitor Brookfield granted extension

Potential Network International partner Brookfield was delayed until June 1 to make a concrete takeover offer

  • Brookfield submitted a £2.1bn proposal for Network International last month
  • A rival offer from Francisco and CVC Capital Partners is worth 387 pence per share
  • The move for Network comes amid a takeover frenzy for UK companies

Brookfield Asset Management has until early next month to make a put up or shut up offer for payments company Network International Holdings.

A month ago, the Canadian private equity group submitted an offer of 400 pence per share, valuing the Dubai-based payments company at £2.1 billion.

The proposal tops an offer of 387 pence per share from Francisco Partners Management and CVC Capital Partners, which Network has said it was “ready to accept.”

Deal on the table: A month ago, Canadian private equity group Brookfield Asset Management submitted a £2.1bn takeover bid for Network International Holdings

Both parties now have until 5 p.m. June 1 to declare a firm intent to make a concrete offer or walk away after Brookfield announced Friday that the city’s takeover panel has agreed to extend the deadline. extend.

Network was established in 1994 to provide payment processing facilities for Emirates Bank and operates in Middle Eastern and African countries such as Jordan, Saudi Arabia and Nigeria.

According to the website, the company employs about 1,750 people and processed nearly 1 billion transactions and more than $42 billion in payments for more than 150,000 merchants by 2021.

It was the largest payments company in the Middle East when it debuted on the London Stock Exchange four years ago in what was the British tech company’s biggest IPO since Worldpay.

However, the share price has since fallen due to falling profits and earnings during the early stages of the pandemic and a short-selling bout by investment group ShadowFall.

Acquisition stake in the company comes amid a widespread frenzy for London-listed companies by foreign investors taking advantage of cheaper valuations and a depreciating pound.

On the same day as Network confirmed that Brookfield had taken an approach, Sureserve, a provider of social housing energy services, said it had agreed to a £214.1 million acquisition by Cap10 Partners.

Telemedicine service provider Medica Group, real estate fund Industrial REIT and veterinary drug maker Dechra Pharmaceuticals are among the next major British companies at risk of falling into foreign hands.

Struggling e-commerce retailer THG and oilfield engineering consulting firm John Wood Group were also targeted by Apollo Global Management.

But last week, both firms announced that the US private equity giant was no longer pursuing them.

London-listed companies acquired in the past two years include fashion brand Ted Baker, supermarket chain Morrisons and Aveva, which was bought by French conglomerate Schneider Electric.

Network International equities were up 1.3 percent Friday morning at 369.6 pence, meaning they’re up about two-thirds over the past 12 months.

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