Tyro rejects $593 million bid from Potentia Capital (updated)

Tyro Payments

11/12/2022 22:04

(Adds Westpac also ends discussions with Tyro, details,
background)
       Dec 12 (Reuters) - Australian payment terminals firm
Tyro Payments  TYR.AX  on Monday rejected the revised proposal
from private equity firm Potentia Capital of A$1.60 per share
which values the company at A$875 million ($593.43 million).
    Tyro said the higher offer continues to undervalue the
company. In September it had rejected Potentia's A$1.27
indicative offer for a similar reason.
    "The revised indicative proposal comes at a time of
significant share market volatility and cyclical weakness in
global technology and payment company valuations," the company
said in a statement. 
    Additionally, Westpac  WBC.AX  also ended its discussions
with Tyro, saying that it was not in the best interests of its
shareholders. 
    The bank was among the three biggest banks in October that
were considering a bid for the payment terminals firm,
underscoring the importance of new revenue streams as rising
interest rates batter the mortgage market.
    The company said it remains open to engaging with other
proposals that represent "compelling value" to its shareholders.
($1 = 1.4745 Australian dollars)
 (Reporting by Navya Mittal in Bengaluru; editing by Grant
McCool)
 ((Navya.Mittal@thomsonreuters.com;))