LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
The stock market can be a very unforgiving place.
Following our report yesterday that money transfer services provider OzForex Group Ltd (ASX:OFX) was calling off its acquisition talks with The Western Union Company (NYSE:WU), OzForex shares took a nosedive to the tune of 42%, closing the day Monday at AUD $1.79. The previous day’s close was AUD $3.09.
When OzForex first disclosed its talks with Western Union its shares were at around AUD $2.60.
So it looks like it wasn’t just the broken M&A talks which sent OFX shares into a tailspin. OFX noted in its press release on the M&A talks breakup that its fourth quarter figures wouldn’t be as good as previously thought, blaming the ‘miss’ on reduced ad spend as it prepared to transition from the OzForex to the OFX brand and a new website url. That resulted, not surprisingly, in lower client acquisition levels, as well as less activity from existing clients.
OzForex also lowered its EBITDA guidance for 2016.