Tyro trumped in bid for Smartpay

Tyro Payments (ASX:TYR) was still working through the due diligence around its March proposal to acquire NZ-based payments provider Smartpay Holdings (ASX:SMP), when it was served a shock on Friday.

Smartpay had entered an ‘exclusivity arrangement’ with another party which made a cash offer of NZ$1.20 per share, trumping Tyro’s NZ$1 a share offer – which was to be mostly scrip.

Exclusivity

The Other ‘unnamed’ Party has until June 9 to conduct due diligence and exclusively consider its offer. However from late May until that date, Smartpay can engage with anyone putting a ‘superior’ deal forward.

Back in March, Smartpay revealed it had two proposals – one from Tyro and the other from an ‘international strategic’.

Tyro out

This morning Tyro announced: “Tyro confirms it is no longer participating in an acquisition process with Smartpay.”

“Tyro submitted a proposal and was conducting due diligence as part of a competitive process.

“Tyro was informed of Smartpay’s decision to enter an exclusivity arrangement with another
party for a cash offer of NZ$1.20 per share on Friday 2 May.

“This was prior to conclusion of the agreed due diligence process and receipt of an update to Tyro’s cash and scrip synergistic merger proposal.”

Tyro last traded at 77.5 cents and has a $409 million market cap; Smartpay last traded at 76c and has a $183 million market cap.

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