IFX Payments May Pull Out of Argentex Buyout After Insolvency Moves

British currency risk management firm Argentex may see its proposed acquisition fall through, as prospective buyer IFX Payments announced on Monday it is weighing a withdrawal of its takeover offer. The announcement comes just days after Argentex entered administration due to an unresolved funding gap.

The takeover, valued at roughly £3 million, was agreed earlier this year following a prolonged trading suspension and a sharp drop in Argentex's market capitalization. Under the agreement, shareholders were to receive 2.49 pence per share.

In May, IFX extended a £20 million loan to Argentex, while the latter saw the resignation of its Chief Financial Officer, Guy Rudolph, along with several other board members.

IFX noted in its latest statement that the agreement permits withdrawal in the event of an insolvency process. The firm is currently in discussions with relevant authorities to determine its next steps.

Argentex had announced on July 18 that its main trading unit had halted operations after failing to secure further financing, triggering the move to appoint administrators. The development marks a significant setback for a company once seen as a promising player in the fintech space.