London-based financial technology firm CAB Payments has firmly rejected what it describes as a "highly opportunistic" takeover proposal from African-focused private investment giant Helios Investment Partners. The company, which experienced a challenging period following its 2023 initial public offering, stated that the increased offer significantly undervalues its future potential and strategic direction.
Increased Offer Still Falls Short
Helios Investment Partners informed markets that it was making a renewed takeover bid of $1.15 (84p) per share for CAB Payments, following the rejection of its previous $1.05 (77p) per share offer just last week. This latest proposal values the London fintech at approximately £213 million, representing a modest increase from the initial bid but still failing to meet the company's valuation expectations.
The investment consortium argued that CAB Payments would be better positioned under private ownership, citing the company's "challenging period" as a publicly listed entity. This difficult phase included a substantial 43 per cent profit decline during the first half of 2024, primarily attributed to adverse currency fluctuations that significantly impacted earnings. The company also faced setbacks when StoneX Group unexpectedly withdrew its acquisition interest in late 2024, further complicating its market position.
Strategic Expansion Amid Takeover Pressure
Despite these challenges, CAB Payments has been actively pursuing strategic initiatives to strengthen its market position and revive its fortunes. Last June, the company announced it had received crucial regulatory approvals from both the Federal Reserve and The New York State Department to establish a representative office in New York through its subsidiary, Crown Agents Bank.
This new office is designed to serve as a regional business hub, driving new client acquisition in the American market while simultaneously strengthening relationships with US Dollar clearing partners. Chief Executive Neeraj Kapur emphasised the significance of this expansion, noting that "a very large majority of our business is US dollars... so there's no doubt that in terms of its presence within our business it is extremely material."
Critical Timeline and Shareholder Considerations
Under the UK Takeover Code regulations, the Helios consortium faces a strict deadline of 2 March 2026 to either announce a firm intention to proceed with a formal offer or withdraw from the process for at least six months. This creates a compressed timeline for both parties to navigate the complex takeover landscape.
CAB Payments is expected to provide its next significant market update with the release of full-year results on 5 March 2026, just three days after the Helios deadline. These financial results will likely serve as a critical benchmark for shareholders evaluating the company's performance and future prospects amid ongoing takeover discussions.
The company's leadership maintains that the current offer fails to recognise the underlying value of its business model, international expansion plans, and long-term growth strategy. As the takeover deadline approaches and financial results loom, shareholders face important decisions regarding the company's valuation and strategic direction in the competitive fintech landscape.
