Tyro Payments (ASX:TYR) gives Potentia time to improve takeover offer

• Tyro Payments (TYR) offers Potentia a four-week due diligence period to revise and improve a takeover offer
• Tyro knocked back Potentia’s last takeover bid of $1.60 per share in December, claiming it “significantly undervalued” the company
• Following discussions with internal and external advisors, TYR has now offered Potentia the due diligence period in the hopes it will develop a “significantly improved” proposal
• However, there is no certainty that a further non-binding indicative offer, a binding offer, or a transaction of any kind will eventuate between the businesses
• TYR shares are up 3.18 per cent and trading at $1.54 at midday AEDT

Tyro Payments (TYR) has given specialist private equity investor Potentia a four-week due diligence period to revise and improve a takeover offer.

Tyro on Friday addressed media speculation surrounding Potentia’s previous indicative takeover offer of $1.27 per share in September, which was revised to $1.60 per share in December.

Potentia’s last takeover offer valued Tyro at approximately $875 million. Today, Tyro’s market cap sits at around $800 million.

Additionally, Tyro received an unsolicited offer from Westpac, although this was withdrawn in December.

Tyro determined the previous Potentia offers “significantly undervalued” the company and were not in the best interests of its shareholders as a whole.

Despite announcing it would cease all discussions with the interested parties in December, TYR said it was open to engaging with any credible change of control proposal that represented compelling value for its shareholders.

Now, following discussions between the two companies’ advisors and further consideration and consultation with its external advisors, TYR has offered Potentia a due diligence period in the hopes it develops a “significantly improved” proposal.

However, there is no certainty that a further non-binding indicative offer, a binding offer, or a transaction of any kind will eventuate.

Tyro is Australia’s fifth largest merchant acquiring bank by number of terminals in the market, behind the four major banks.

TYR shares are up 3.18 per cent and trading at $1.54 at midday AEDT.