EML Payments Shares Jump on Takeover Speculation (ASX:EML)

By ,

EML Payments [ASX:EML] clarified media speculation about a potential takeover by Bain Capital.

EML shares rose as much as 14% in morning trade, before retracing somewhat in the afternoon.

The payment solutions firm may be looking like a takeover target, having fallen 50% in the last 12 months following regulatory issues and a souring outlook for the fintech sector, which saw ASX BNPL stocks tank.

eml asx share prices


Source: Tradingview.com

EML addresses takeover speculation

Yesterday, the Australian Financial Review hinted at takeover talks between EML and Bain Capital. The talks included an exclusivity period where Bain had access to EML’s books.

But the talks fizzled out.

As the Australian Financial Review reported:

Sources involved said Bain’s exclusivity agreement ended late last month without an agreed deal.

Bain’s understood to have walked away for now, unable to stack up the hefty mooted takeover price after going through the diligence materials.

For reference, EML is currently trading at a market cap of around $1.05 billion.

Today, EML confirmed it held discussions with Bain, however ‘those discussions have now ceased’.

EML did not rule out hearing new proposals. The EML board said it will ‘always consider proposals presented to the company’.

Goldman Sachs and Herbert Smith Freehills have been appointed as financial and legal advisors.

EML Payments share price outlook

It hasn’t been an overly positive time for fintech stocks lately.

EML is down 50% over the past 12 months.

Zip Co [ASX:Z1P] is down 85% and hit a fresh 52-week low today.

And RAIZ Invest [ASX:RZI] is down 45% this year.

In depressed times, these sell-offs offer opportunistic companies buying opportunities.

Will other companies beside Bain Capital consider EML?

What price are they willing to pay for the fintech? And at what price is the EML board willing to sell?

Judging from today’s sharp share price jump, investors are likely thinking the pursuit of EML isn’t over.

Beyond the fintech industry, you may have heard, is the metaverse — an industry that encompasses more than just fintech but other technologies and beyond.

But with everyone coming up with their own predictions surrounding the metaverse, it may have become a bit of a buzzword.

How can you tell, while sifting through all the opinions out there, what is concrete and sound?

Our experts have compiled a report that explores the stakeholder possibilities that break down the mysteries of the metaverse: ‘The METAVERSE Explained for Aussie Investors:

Myths, Mania…and Five Hidden Ways to Stake Your Claim Now’.



Kiryll Prakapenka,

For Money Morning

About Kiryll Prakapenka

Kiryll Prakapenka is a research analyst focusing on investigating the biggest trends in investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from the University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding…

Sayona Mining Share Price: $190 Million Raised to Restart NAL Operation

Lithium producer Sayona Mining [ASX:SYA] has raised $190 million via an institutional placement to restart its North American Lithium (NAL) operation in Quebec.

Telus Revokes Bid for Appen: Appen [ASX:APX] Shares Plummet 20%

Shares for Appen [ASX:APX] have fallen over 20% today, as Telus revokes its takeover offer.

NAB [ASX:NAB] Enters BNPL Market by Launching Afterpay and Zip Rival

Big Four bank National Australia Bank [ASX:NAB] announced it will launch its own BNPL product, entering a crowded market.

Appen Shares Spike on $1.2 Billion Bid

Artificial intelligence services business Appen [ASX:APX] saw its shares spike 30% before entering a trading halt on news of a takeover bid from TELUS International.

Nanosonics Share Price Flat on Business Update

Healthcare stock Nanosonics [ASX:NAN] announced a transition to a direct sales model in North America.

TechnologyOne [ASX:TNE] Shares Flat Despite Record H1 FY22 Profit

Enterprise SaaS stock TechnologyOne [ASX:TNE] has released its half-year results, notching its 13th year of ‘record first half profit’.