StoneX Group Abandons CAB Payments Bid After Shareholder Rejection

StoneX Group has announced it will not proceed with its offer for CAB Payments Holdings. The US financial services firm had increased its potential bid to 110 pence per share, up from an initial approach of 95 pence, which the CAB Payments board indicated it was "minded to recommend."

The Helios consortium, which holds approximately 45% of CAB Payments, declined to support StoneX's offer. StoneX expressed disappointment that Helios would not provide an irrevocable undertaking or agree to accept its terms. According to Alliance News, without backing from the largest shareholder, StoneX chose to withdraw.

Helios had previously made a firm offer of $1.15 per share for CAB Payments, describing it as the only "firm and deliverable" bid. Its refusal to endorse StoneX's higher-price approach effectively blocked the acquisition.

Following StoneX's withdrawal, CAB Payments shares closed at 83.70 pence in London on Tuesday, down 0.4%. The price remains below both the level implied by Helios' offer and StoneX's floated price of 110 pence per share.

StoneX's interest in CAB Payments came after a difficult period for the London-listed firm, which has faced pressure since its IPO and attracted opportunistic bids as its share price lagged its flotation valuation.

CAB Payments listed in London in 2023, focusing on cross-border payments to emerging and frontier markets, but its stock has struggled amid concerns over revenue volatility and regulatory risks in key corridors.

StoneX has expanded its deal-making activity in recent years to grow its trading, payments, and markets infrastructure. It has acquired businesses to integrate into its network, such as UK-based JBR Recovery's precious metals recycling arm, to secure supply and add refining capacity.

The firm has also used acquisitions to grow its capital markets and brokerage footprint, including agreeing to buy US broker-dealer The Benchmark Company. It has targeted futures and clearing scale, with a deal to acquire established futures broker R.J. O'Brien.