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Highlights
- Smartpay (SMP) shares soared 46% following takeover proposals.
- Bids received from Tyro Payments (TYR) and an unnamed international company.
- Smartpay board allows limited due diligence but no deal is certain yet.
Smartpay (ASX:SMP), a provider of payment solutions for businesses, has experienced a significant surge in its share price following the announcement of takeover interest. The company revealed it has received two separate, conditional, non-binding proposals, triggering a 46% rally in its stock value.
Two Competing Takeover Bids
The first bid comes from Tyro Payments (ASX:TYR), proposing to acquire the entire Smartpay business at NZ$1 (or A$0.90) per share. This offer consists primarily of Tyro shares, with a portion to be paid in cash.
The second bid is from an international party, which has also submitted a proposal to acquire 100% of Smartpay. However, fewer details have been disclosed about this offer compared to the Tyro bid.
Both proposals are still in their early stages and subject to various conditions, including successful due diligence. The Smartpay board has not yet made any decisions regarding the acceptability of either proposal.
Board’s Decision and Next Steps
In response to these offers, the Smartpay board has decided to grant both Tyro and the international bidder a limited period to conduct due diligence. This move is intended to allow a more comprehensive evaluation of both proposals while giving bidders an opportunity to refine and potentially improve their offers.
As part of this process, Smartpay will also conduct its own due diligence on Tyro, considering that a significant portion of Tyro’s proposal is in shares.
Despite this progress, Smartpay has clarified that providing limited due diligence access does not guarantee that either of the current offers will advance into a binding agreement. The company emphasized that there is no certainty a final transaction will occur.
What’s Next for Smartpay Shareholders?
While discussions and evaluations are ongoing, Smartpay has stated that shareholders are not required to take any action at this time. The company remains committed to keeping its investors informed as new developments unfold.
The market’s strong reaction to the takeover bids indicates investor optimism regarding Smartpay’s future. However, the final outcome will depend on the ongoing due diligence process and whether the offers evolve into formal agreements.
