Alpha Group International said Tuesday that it has rejected a takeover approach from U.S.-based Corpay Inc., confirming that its board unanimously dismissed a preliminary all-cash proposal to acquire the FTSE 250-listed firm.
Alpha Group International Rejects Corpay Acquisition Proposal
In a statement, Alpha said it had carefully reviewed the conditional proposal with its financial advisers before deciding to reject the offer. The company did not disclose financial details of Corpay’s bid.
Corpay, a Georgia-based provider of business payments and spend management solutions, had previously confirmed it was in discussions with Alpha regarding a potential acquisition, following media speculation.
However, Alpha’s board seemingly feels the proposal is not in the best interests of shareholders.
Under UK takeover rules, Corpay now has until 5 pm on 30 May to either make a firm offer or announce that it does not intend to proceed.
“There is no certainty that an offer will be made,” Corpay noted in its own statement last week.
Alpha, a London-based financial services company specialising in foreign exchange risk management, has said it will make further announcements if and when appropriate.
