Pemba Capital walks away from $40.4 mln Smartpay takeover proposal

Friday 15th December 2017

Australian investment firm Pemba Capital Partners won't go ahead with plans to buy payment terminal provider Smartpay Holdings for $40.4 million after wrapping up due diligence.

The Sydney-based firm put forward an indicative offer of 23.5 cents a share in August and was granted due diligence access last month, but today ended its pursuit of the payments company. The shares dropped 8.7 percent, or 2 cents, to 21 cents.

"For Smartpay it is very much business as usual, with no change to our strategy, as the company looks to continue to deliver on value creation opportunities in front of us," chair Greg Barclay said in a statement.

Last month Smartpay reported a first-half profit of $900,000 as lower wages offset a drop in sales when its development focused on internal projects rather than external products that could then be sold.

(BusinessDesk)

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