Australia's EML Payments soars on disclosing takeover talks with Bain Capital

EML Payments

13/04/2022 02:07

(Adds analyst comments)
    ** Shares of EML Payments Ltd  EML.AX  jump as much as 14.3%
to A$2.96, their biggest intraday pct gain since Nov. 25
    ** The payment solutions provider says it was in discussion
with U.S.-based investment firm Bain Capital regarding a
potential change of control proposal earlier this year, but said
discussions have now ceased  urn:newsml:reuters.com:*:nASXb78Zw6
    ** Local media reported https://12ft.io/proxy?q=https://www.afr.com/street-talk/bain-capital-checks-out-eml-payments-bankers-chase-other-buyers-20220412-p5acvc
 on April 12 that EML had several rounds of takeover talks with
Bain Capital, including a period of exclusivity which saw Bain
gain access to EML's books
    ** The report added that, according to sources, Bain's 
exclusivity agreement ended in March without a deal
    ** EML has a market capitalisation of A$988 million 
($735.76 million), according to data from Refinitiv Eikon
    ** EML possess many traits that private equity find
attractive, including positive free cash flow and high cash
conversion, solid balance sheet, and profitability with
opportunity to expand margins given operating leverage - RBC
    ** Stock down 17.7% this year as of last close
  


($1 = 1.3428 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))