The takeover saga at listed FinTech CAB Payments has intensified after an activist shareholder accused the company’s independent board of acting against the interests of shareholders.
Last month investor Helios Consortium said it was considering making an improved £213 million bid for the London-listed FinTech. However board members excluding Nitin Kaul and Henry Obi CBE – who represent the interests of Helios – rejected this initial approach.
StoneX, a Fortune 500 payments firm listed on New York’s Nasdaq exchange, then said it was considering a bid of £241m for CAB. The independent board also rejected that approach, again claiming that it significantly undervalued the firm and its future prospects.
Now CAB has accused Helios of “launching an unsolicited firm offer for CAB Payments at an unrecommendable value” and said this is “highly opportunistic”.
Pointing to the higher value of the StoneX offer, it said it “would encourage the Helios Consortium to consider proposals at a premium to its own offer that could be in the best interests of the company’s shareholders as a whole, including minority shareholders”.
It added: “Diverting management time and attention from executing the company’s business plan (for the benefit of all shareholders), in order to assist the Helios Consortium in preparing the extensive information it has requested to execute its unrecommended offer, is not in the best interests of the company’s shareholders as a whole.”
It said Helios had received public support for its offer from shareholders representing only 7.59% of the issued share capital.
However Helios said it was supported by shareholders representing 52.70% of shares. It called on CAB to provide it with specific, non-public information which is required when formalising a bid with regulators, saying it had so far refused to do so.
“The Helios Consortium considers this stance to be against the interests of CAB Payments shareholders,” it added.
“The Helios Consortium currently has no choice but to proceed with making the relevant filings based on incomplete information.”
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CAB, which floated in 2023 with a market cap of £851m, has endured a torrid time as a listed company and has a current valuation of £210m (writing at 8.30am).
However the company, which specialises in helping businesses move money into and out of emerging markets, reported a significant improvement in its financial and operational performance in FY25, with total income of around £119m.
The group said its performance has been driven by increased transaction volumes, a growing client base and new product capabilities, alongside progress deepening relationships with central banks and regulators in key markets.
It also expanded its international presence during the year, opening a New York office in December and securing a licence in principle to operate in Abu Dhabi in October.