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SafeCharge attracts takeover offer

The payments group has received an $889m bid from Nuvei
May 22, 2019

Shares in SafeCharge (SCH) soared on the news that it has received a recommended cash offer from private payments company Nuvei, valuing it at around $889m (£699m). Nuvei is a leading provider of technology-driven payment solutions to merchants and technology and distribution partners, predominantly in the US and Canada. Its directors believe Safecharge “is an attractive business with one of the leading positions in the high-growth e-commerce payments market” – and that it benefits from a “diversified and stable customer base”.

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Under the terms of the acquisition, Safecharge’s investors are entitled to receive $5.55 per share – or £4.36, based on the exchange rate at the time of the announcement. This constitutes a 25 per cent premium to the shares’ prior-day closing price. Shareholders are also still entitled to receive the (already announced) final dividend of 7.22p a share.

The deal is subject to regulatory and shareholder approvals. But Nuvei has received irrevocable undertakings in respect of around 70.5 per cent of SafeCharge’s issued share capital. These undertakings span all SafeCharge directors who hold shares in the group (2.3 per cent), as well as Northenstar Investments – an investment holding company controlled by Teddy Sagi, SafeCharge’s majority shareholder (68.3 per cent).