CVC's £2 Billion Swipe Right

CVC's £2 Billion Swipe Right

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  • A consortium of investors supported by CVC Capital Partners and Francisco Partners is in the final stages of negotiations to purchase Network International Holdings, a credit card processing company based in the Middle East. The proposed deal is expected to be valued at a minimum of £2 billion ($2.5 billion), with the consortium offering around 380 pence per share. This represents a significant increase of 56% over the closing price of Network's shares prior to reports of the potential acquisition.
  • Network is pushing for a proposal of around 400 pence per share. Negotiations continue with the buyout firms and Network's board. Network's shares rose 1% on Friday, closing at 303 pence, giving the company a market capitalization of £1.6 billion. After a Bloomberg News report on CVC's interest, Network confirmed on April 13 that it was in talks regarding a possible deal with the buyout consortium.

Why it matters

A potential deal is under discussion, but terms and outcomes are uncertain. CVC declined to comment, and Francisco and Network representatives were not available outside regular business hours. The Middle Eastern payments industry has seen increased activity, with Mashreq Bank PSC trying to sell its payments business, and Brookfield Business Partners LP acquiring control of First Abu Dhabi Bank PJSC's Magnati unit in a deal worth up to $1.15 billion.


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