Network International has received a non-binding, preliminary proposal regarding a possible cash offer from Brookfield Asset Management.
The potential offer of £4.00 per share from the Canadian outfit values Network International at around $2.7bn.
This follows news that private equity firms CVC and Francisco Partners offered £3.87 per share. They have until 11 May to make a firm offer for Network International or walk away.
In a statement, Network said: “The Board of Network is currently evaluating the Brookfield Proposal with its financial advisers and a further statement will be made in due course. There can be no certainty that an offer will be made by Brookfield, nor as to the terms on which any offer might be made.
Emirates NBD holds 6% stake in Network International
Emirates NBD has a long-standing relationship with Network International. Network provides a range of issuer solutions and value-added services to the bank across the UAE, Saudi Arabia and Egypt.
For example, the bank teamed up with Network International last year to roll out digital payment platform Emirates NBD Pay. Emirates NBD is leveraging the partnership to offer card acceptance to its existing and potential international banking clients. The bank holds a 6% stake in Network International following its $1.4bn listing on the London stock exchange in April 2019.
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Network International issued a first quarter trading update on 18 April. Its 2023 guidance remains unchanged: high teens constant currency y/y revenue growth and slight y/y EBITDA margin expansion.
Nandan Mer, CEO said: “We have seen a solid start to the year. This demonstrates economic strength across key markets. This is supported by the accelerated transition from cash to digital payments and continued successful strategic execution of our growth-oriented strategy. Merchant Services performance remains very strong, with trends reflecting buoyant UAE consumer spending and the region’s attractiveness to international visitors.”
Brookfield acquired a 60% stake in the payments business of First Abu Dhabi Bank last year. The deal valued the Magnati payments unit at $1.15bn.