TOP NEWS: Visa To Acquire Earthport For GBP198 Million

LONDON (Alliance News) - Visa Inc and Earthport PLC reached an agreement for the US credit card ...

Alliance News 27 December, 2018 | 8:30AM
Email Form

LONDON (Alliance News) - Visa Inc and Earthport PLC reached an agreement for the US credit card giant to buy the London-listed cross-border payment provider in a deal that values Earthport at GBP198 million.

Visa International Service Association, a unit of Visa Inc, will acquire Earthport for 30p per share, a 50% premium to the 20p per share price at which Earthport was valued back on October 4, 2017.

At that time, Earthport raised GBP25.0 million in a placing of 125.0 million shares at 20p apiece.

Earthport shares jumped on Thursday at the London market open, trading at 28.20p each. On Monday Earthport stock closed at 7.45p.

Earthport's board unanimously recommended that shareholders vote in favour of the deal, which they deem "fair and reasonable".

Earthport's Chairman Sunil Sabharwal said: "The Earthport board believes the offer represents an opportunity for shareholders to realise an immediate and attractive cash value in Earthport today. Visa shares our vision of growth and expansion for Earthport and, as such, we believe it is a suitable and appropriate partner for our employees, partners, customers and other stakeholders."

Over 17% of Earthport investors – including Oppenheimer and OFI Global Institutional – have already committed to accepting the takeover.

The deal comes after a difficult year for Earthport in which it lost a major a customer, saw reduced transaction volumes and underwent a management shakeup.

By Elena Cherubini; elenacherubini@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

Email Form
Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Earthport PLC 36.90 -
About Author Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.