32 C
Dubai
Friday, April 25, 2025
spot_img

Brookfield enters competition for UAE international network with $2.7b proposal – News

[ad_1]

Proposed deal at 400p per share, compared with 387p offered by CVC-Francisco Partners consortium


read more…




Credit card late fees are an area some lenders take advantage of.

Reuters

published: Friday, April 21, 2023 at 2:12 pm

Canada’s Brookfield Asset Management made a £2.13 billion ($2.7 billion) bid for payments provider Network International, topping a joint proposal by CVC Capital and Francisco Partners.

UAE-based Network International said it was evaluating Brookfield’s proposal, which could be the start of a bidding war for the Middle East and Africa’s largest payments processor.

Brookfield offered 400 pence a share, compared with 387 pence a share, in a joint proposal from private equity firms CVC Capital and Francisco Partners disclosed on Monday.

Shares in London-listed Network International rose more than 11 percent to 400.2 pence in early trade, suggesting that an offer around that price was acceptable.

Analysts believe the company will benefit from changes in the payments and financial services infrastructure in the Middle East and Africa.

Brookfield, which manages more than $5 billion in assets in the Middle East, bought a 60% stake in First Abu Dhabi Bank’s payments business Magnati last year.

Credit Suisse analyst Justin Forsythe said Magnati is the second-ranked payment processor in the UAE, which would give Brookfield about 60% to 65% of payments volume in the UAE.

But having both proposals on the table would increase the likelihood of a deal with Network, Forsythe said.

Major investors in Network International include Capital Research and Mastercard UK, which listed in London in April 2019 at an initial public offering of 435p a share.

Network International provides payment gateways for online merchants. It recorded more than $42 billion in processing volume for more than 150,000 merchants in 2021, according to its website.

It said on Monday it was considering recommending the consortium’s proposal if it made a firm offer.

CVC Capital and Francisco Partners have until May 11, and Brookfield has until May 19, to either make a firm offer for the company or leave.

[ad_2]

Source link

Related Articles

FUGENO: Awakening the Soul of Skincare

In today’s hyper-industrialized world of synthetic chemicals, rushed routines, and overloaded shelves of beauty products, finding skincare that is both effective and ethical feels...

UAE to Witness Rare Astronomical ‘Smiley Face’ in the Sky.

UAE are in for a delightful cosmic treat as a rare celestial event is set to grace the skies on the night of April...

Flying Taxis Take Off: Abu Dhabi Greenlights Hybrid Heliport for 2026 Launch

Flying Taxi Reality by 2026, In a major step toward revolutionizing urban mobility, Abu Dhabi has approved the design for the United Arab Emirates’...

UAE and South Korea Seal Bold Agreement to Drive Global Nuclear Innovation

UAE and South Korea have entered into a landmark agreement to collaborate on international nuclear power projects, signaling a strategic partnership that aims to...

Pakistan and UAE Forge Stronger Ties with Strategic New Agreements

Pakistan and the United Arab Emirates (UAE) have signed two agreements and a Memorandum of Understanding (MoU) aimed at enhancing cooperation and fostering stronger...

Latest Articles