Potentia's withdrawal from intended Tyro Payments' buyout surprising - Morningstar

Tyro Payments

22/05/2023 19:57

** Private-equity firm Potentia Capital's withdrawal of its
buyout proposal for Australian payment terminals firm Tyro
Payments  TYR.AX  was surprising, says Morningstar
    ** TYR's statement suggests there were complexities for
Potentia to own TYR's banking ops which do not align with its
risk appetite - brokerage
    ** Hassles for Potentia to own a bank, together with
concerns on a downturn affecting TYR, likely led to the deal not
materialising, says Morningstar
    ** TYR shares fell as much as 22.8% on Monday, their biggest
intraday pct. fall since Feb. 21, 2002, after the news
    ** "Tyro can improve earnings and generate value to
shareholders without any corporate action" - Morningstar
    ** Brokerage expects TYR to generate maintainable profit
growth starting fiscal 2025
    ** 4 of 8 analysts rate the stock "buy" or higher, 1 "hold",
3 "sell" or lower; median PT is A$1.50 – Refinitiv
    ** Stock down 9.5% YTD, as of last close

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))