CAB Payments Shares Plunge as StoneX Ditches Bid Talks

CAB Payments' shares have taken a significant hit after StoneX, a US-based financial services company, abandoned its bid talks for the London-based fintech. The termination of the takeover discussions has raised concerns about CAB's financial performance and growth prospects, leading to a 61% plunge in its share price since its IPO.

CAB Payments, which provides infrastructure for business-to-business money transfers, was London's biggest IPO last year. The company's valuation at the time of its IPO was £851m, but its shares have since fallen dramatically. The decline can be attributed to a major foreign currency policy shift by the Nigerian central bank, which weighed heavily on CAB's earnings.

StoneX's decision to walk away from the bid for CAB Payments may have been influenced by several factors. Market conditions and investor sentiment likely played a significant role, with CAB's shares plunging 61% since its IPO. This decline may have raised concerns for StoneX about CAB's financial stability and growth prospects. Additionally, the ongoing macroeconomic uncertainty and potential risks associated with CAB's exposure to emerging markets could have contributed to StoneX's change of heart.


CAB Payments' financial performance, particularly its earnings impact, also played a significant role in StoneX's decision to ditch bid talks. After the Nigerian central bank's foreign currency policy shift, CAB's earnings were heavily weighed down, leading to a 61% plunge in its shares. Despite the initial proposal of 145p per share valuing CAB at £368.5m, the company's financial outlook and earnings trajectory likely raised concerns for StoneX, prompting them to walk away from the potential takeover.


Regulatory concerns or antitrust issues may have also played a role in StoneX's decision to walk away from the bid. Under UK takeover rules, StoneX had until 5pm on 7 November to make a firm offer or withdraw. CAB Payments announced that StoneX had not made a formal bid by the deadline, suggesting potential regulatory hurdles or antitrust concerns.

In conclusion, CAB Payments' shares have plummeted after StoneX abandoned its bid talks, raising concerns about the company's financial performance and growth prospects. Market conditions, investor sentiment, financial performance, and regulatory concerns all contributed to StoneX's decision to walk away from the potential takeover. As CAB Payments continues to navigate the challenges it faces, investors will be watching closely to see if the company can turn its fortunes around and regain investor confidence.