(Alliance News) - Fraud-hit former Travelex owner Finablr PLC on Tuesday reported it has agreed to a takeover offer from Prism Advance Solutions Ltd in what would be a first major UAE and Israeli commercial transaction.
Finablr said the offer will restructure and settle all its debts, provide working capital and also revamp its board, three key elements which could ensure the deal gets over the line within four weeks.
"After due consideration the board has approved the offer and the company will proceed to negotiate a share purchase agreement with Prism documenting the terms of the transaction and seek shareholder and regulatory approval," Finablr said.
Guy Rothschild, co-founder and director at Prism Advance, added: "We are delighted with the Finablr deal, representing as it is the first major UAE-Israeli commercial transaction."
Finablr's shares were suspended from trading in March.
Back in August, Bavaguthu Raghuram Shetty resigned from his post as Finablr's co-chair. It was the latest development in a tumultuous 2020 for Shetty, who until mid-February chaired UAE-focused healthcare firm NMC Health PLC.
In April, Shetty said "serious fraud and wrongdoing" took place at Finablr and NMC, but added that he had "no knowledge" of transactions made under his name.
Shetty explained that bank accounts were fraudulently created under his name, something he said he had no knowledge of and had not consented to.
Finablr Chief Executive Bhairav Trivedi said: "After months of hard work under very trying liquidity conditions compounded by the impact of the Coronavirus on our operations, I am excited to now go forward with Prism. My management team has done a stellar job of focusing on our operations whilst seeking a holistic solution for the group.
"Our employees have worked at reduced or zero pay for some months and this deal is only possible thanks to their hard work and sacrifice. We now enter a new chapter in the company's history."
By Eric Cunha; ericcunha@alliancenews.com
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