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Earthport into orbit on Visa bid

The share price of the cross-border payment specialist gained 267 per cent on the Visa approach
December 27, 2018

Shareholders in Earthport (EPO) were treated to some festive cheer after it emerged that credit card giant Visa (NYSE: V) had tabled a £198m bid for the Aim constituent. The offer price of 30p a share represents a 250 per cent premium to the cross-border payment specialist’s six-month weighted average share price.

IC TIP: Await documents at 27.35p

Unsurprisingly, Earthport’s board is recommending that shareholders vote in favour of the deal, while Visa’s takeover vehicle has also received irrevocable undertakings to accept the offer from OppenheimerFunds and OFI Global Institutional, bringing the level of acceptances to 17.45 per cent as the offer was tabled.