Tyro, a provider of payments, and Westpac have halted takeover discussions without a formal offer being made.
In October, the bank acknowledged that early-stage negotiations were underway. But it did add that “there is no certainty that any transaction will happen” at the time.
After conducting its due diligence, the bank determined [pdf] on Monday that “submitting an offer is not in the best interests of Westpac shareholders at this time.”
In a different statement, Tyro claimed that “substantial negotiations” had taken place with private equity company Potentia and Westpac, two potential suitors.
Tyro also claimed that non-binding “indicative proposition” valued at $875 million was made by private equity firm Potentia.
In the end, it was decided to “stop all present conversations with these parties in respect to a potential change of control transaction,” according to the statement.
The firm stated that “such conversations have not produced a proposal that the Board believes fairly values Tyro.”
When it comes to “credible” sale negotiations that deliver “compelling value for Tyro shareholders,” Tyro said it “remains open.”
No such proposal has been received, according to the board’s evaluation of the company’s promising development potential in the Australian payments and business banking industries.
Therefore, the board and management will keep putting their attention into carrying out Tyro’s current strategy.
Following the revelations, the price of Tyro’s shares dropped by approximately 20%; they were trading at $1.20 at the time of publication.
