CAB Payments shares plunge after StoneX ditches bid talks (updated)
07/11/2024 09:04
(Recasts with share price move, adds background)
LONDON, Nov 7 (Reuters) -
CAB Payments CABP.L saw shares tumble by as much as a
fifth in early trading on Thursday after U.S. rival StoneX Group
SNEX.O pulled out of takeover talks.
Stock in the London-listed cross-border payments
processor was trading 17.5% lower at 0858 GMT, and is on course
for its second largest one-day stock price drop since an October
2023 profit warning, after StoneX confirmed it did not intend to
make an offer for the company.
CAB Payments, which debuted on the London bourse last
year, promised a full-year trading update next January and
pledged to drive "attractive, sustainable growth" from 2025.
"The board of CAB Payments is highly confident in the
company's strategy and is pleased with the strategic progress
being made," it said in a statement.
CAB Payments markets itself as a fast-growing fintech
with a global network to help governments, institutions and
organisations such as NGOs make payments in countries such as
Nigeria and Cameroon.
But it spooked investors last year after slashing its
revenue forecasts by 17%, blaming "recent challenges" in some of
its key currency markets such as the Central and West African
franc, as well as uncertainties surrounding the Nigerian naira.
(Reporting by Kirstin Ridley; editing by Sinead Cruise)
((kirstin.ridley@thomsonreuters.com; +44 (0) 207 513 5666;))