CAB Payments and StoneX Continue Acquisition Discussions

The company revealed that StoneX is currently conducting due diligence as part of the process. Earlier this month CAB Payments said it had received an unsolicited non-binding proposal from StoneX at 145p per share.

“Discussions with StoneX are continuing and StoneX and its advisers are undertaking due diligence,” CAB Payments said in its release on Wednesday.

While there is no certainty that an offer will be made, StoneX is required to announce its intentions by November 7, 2024.

Meanwhile, CAB Payments also provided an update on its Q3 trading performance.

While the company experienced growth in volumes, it also faced challenges such as a shift towards lower-margin G10 currencies and slower-than-expected economic trading activity.

Additionally, the expected increase in volumes from International Development Organizations (IDOs) in Q4 is now unlikely to materialise due to changing global macroeconomic and political factors.

In the nine months to September 30, the company’s FX & Payments volumes is said to have grown 9% on a combined basis, consisting of flat growth in emerging markets and 15% growth in developed markets. Market-wide global payment volumes fell 6%.

Despite the challenges, CAB Payments said it remains focused on executing its four strategic pillars: network expansion, client acquisition, platform enhancement, and capital allocation.

Neeraj Kapur, Group CEO of CAB Payments, said he is confident in the company’s long-term prospects, stating, “We are continuing to diversify the business and enhance relationships with our clients at a senior level, including with key Central Banks.”

He also acknowledged the short-term headwinds and the impact on the company’s expected operating leverage.