Network International, which is based in Dubai, is currently in talks with a consortium led by CVC Capital Partners to buy the company for 2 billion pounds.
The London-registered payment system, which includes Mastercard as an investor, received a non-binding offer for 387 pence per share. This level of value is 28% higher than the figure that was recorded last Friday, April 14, at the close of trading. Currently, the company provides services in the markets of more than 50 countries in Africa and the Middle East. The firm processes digital payments for sellers using computers and smartphones.
In 2015, 51% of the shares of Network International, owned by Emirates NBD, as a result of the transaction was allocated to a separate company. After that, Warburg Pincus and General Atlantic received the remaining 49% of minority shareholders. In 2019, Mastercard confirmed plans to invest $ 300 million after listing the company on the London Stock Exchange. The payment giant announced its readiness to provide the card scheme with a 9.99 percent stake in the firm.
Network International confirmed that it had received offers, but in all cases, they were rejected. The company’s representatives emphasize that the final decision on the incoming proposals is made depending on the fulfillment of several prerequisites, including the completion of satisfactory due diligence.
The Board confirmed its readiness to recommend a new proposal. At the same time, there is a high probability that shareholders will prefer to wait for the moment when the value of one share exceeds the 400 pence mark. The consortium must make a final decision by May 11.
Over the past few years, there has been an increase in activity in the payment industry in the Middle East. For example, in 2022, Brookfield Business Partners LP bought control of the Magnati division of PJSC First Abu Dhabi Bank. This was done as part of a deal worth $1.15 billion. Lender Mashreqbank PSC, which is based in Dubai, is also exploring the possibility of selling its payment business.
As we have reported earlier, Mastercard and Network International Unveil Fraud Prevention Tech.