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(Alliance News) - Network International PLC on Friday said it agreed to a takeover from entities backed by Toronto-based private equity firm Brookfield Asset Management Ltd.
Brookfield will pay 400 pence per Network International share, a 64% premium to Network International's 243.6p share price at the close of play on April 12, the day before the Middle East and Africa-focused payments provider first received buyout interest.
Network International shares rose 5.7% to 383.60 pence each on Friday morning in London.
Brookfield is an alternative asset manager with more than USD825 billion of assets under management, and is focused on real estate, infrastructure, renewable power, private equity and credit.
The takeover offer gives Network International an equity valuation of GBP2.2 billion. It requires approval from 75% of voting shareholders at a court meeting and at a general meeting.
Network International expects the court meeting and the general meeting to be in July or early August, and for the takeover to become effective in the final quarter of 2023.
The company said it Brookfield views it as a "highly attractive business" with a strong position in the Middle East & Africa payments space, a well-integrated platform covering the entire payments value chain, a customer base of more than 150,000 merchants and 200 financial institutions, and a strong network of regulatory licences and relationships with banks, among others. Further, Brookfield believes that Network has a management team with a "strong" track record of growth and execution.
Back in April, Network was the object of buyout interest from CVC Capital Partners and tech-focused investor Francisco Partners Funds. This then led to a 387p per share takeover proposal.
Later in April, Brookfield made a 400p proposal. Further, Network expects Brookfield Business Partners to invest up to about USD150 million for equity financing.
Brookfield had a 'put up or shut up' deadline of May 19, though this was twice extended, first to June 1 and then to Friday.
Network International Chair Ron Kalifa said: "The board has carefully considered the Brookfield offer in the context of the long term growth prospects and opportunities available to the business, balanced against the current challenges and uncertainty in the global macroeconomic environment and the expected timeframe that would be required to generate a similar level of value creation for Network shareholders. The Brookfield offer represents an opportunity for Network shareholders to crystallise, in cash, the value of their investments at a significant premium."
By Tom Budszus, Alliance News reporter
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