CAB Payments rejects sweetened takeover bid from Helios consortium

Feb 2 (Reuters) - CAB Payments Holdings CABP.L rejected on Monday a sweetened $292 million take-private bid from a consortium led by Helios Investment Partners, saying the all-cash offer fundamentally undervalued the British cross-border payments processor.

The $1.15 per share bid announced by the consortium earlier on Monday is its second for the company, following the rejection of its previous $1.05 per share offer last month.

CAB Payments' shares, which shed nearly 10% of their value in 2025, rose as much as 12.5% after it rejected the consortium's offer.

CAB Payments has had a bumpy ride since its London market debut in 2023, marked by profit warnings, job cuts, headwinds from a strong dollar and increased payroll taxes.

Its weak valuations have previously attracted other suitors, including U.S. rival StoneX Group SNEX.O , which walked away from acquisition talks in November 2024 without making an offer.

CAB indicated it expects adjusted core profit for the year to slightly exceed consensus estimates, suggesting its turnaround efforts may be gaining traction.

"The independent Board remains confident in the Company's strategy," it said in a statement on Monday, while also calling the consortium's proposals "highly opportunistic".

The consortium, comprising major private equity firms focused on Africa, is vying for CAB Payments' offerings in emerging markets, especially sub‑Saharan markets.

"After CAB Payments’ challenging period as a listed company, the long-term success of the business will be better supported under the Helios Consortium’s private ownership," the consortium said.