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Smartpay (ASX:SMP) shares have shot up above 77cps in the third hour of Monday trades, marking a +46% intraday gain following receipt of a takeover offer from larger fintech Tyro Payments (ASX:TYR).
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Tyro is going for 100% of Smartpay at A$0.91/sh (NZ$1.00), a move the company confirmed in a presser to the ASX following media speculation.
For its part, Smartpay issued a Directors’ statement at around the same time confirming that it’s received a bid from Tyro – but so too has it received another offer from an unnamed “international strategic.”
(Presumably, Smartpay meant to include the word ‘partner’ after that in the release.)
Both players are eyeing scooping up 100% of Smartpay and both parties are now kicking off a due diligence period, taking the glass over Smartpay’s books.
For its part, Smartpay doesn’t appear to be too strongly leaning towards Tyro yet over the other party, and the same is true vice versa.
Shareholders were told not to take any action at this time.
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One thing worth noting: Smartpay on Monday wrote a due diligence process would give both parties a chance to “improve their respective proposals.”
For now, it appears the market is pricing Smartpay at just under 80cps – that’s at 12.20pm Sydney time.
And it’s unlikely shareholders will mind too much who buys Smartpay out, just as long as somebody does. Take away today’s 46% jump and you’re left with a chart looking pretty saggy over the last twelve months.
One year returns remain down -44% for Smartpay, even after including today’s revaluation, which has brought YTD returns to +50%.
SMP last traded at 77.5cps.
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