Australian multinational banking and financial services Westpac is in talks to buy Tyro. The firm is in the early phases of acquisition. Westpac confirmed in The Australian financial review’s street talk that it was in preliminary discussion with Tyro.
Westpac said in a statement, ” it is in preliminary discussions ” with the Australian company” to acquire 100 percent of the company’s issued share capital.”
The company believes the acquisition will strengthen Westpac’s small business proposition, especially in healthcare and hospitality.
Tyro’s current share price is $1.59
Tyro has a market capitalisation of over $800 million. Its current share price is $1.59. Tyro said in a statement that it had received approaches from several companies expressing their interest. It also includes Westpac. Though, Tyro did not name any other party. The information adds, ” none of these approaches is sufficiently definite or advanced to warrant further disclosure at this time.”
Pretty effective in drumming up interest
QVG Capital co-founder and portfolio manager Chris Prunty said the Tyro board had been “pretty effective in drumming up interest” and a bank buyer made sense.
He adds, “I actually think NAB is a logical buyer. There could be some competitive issues with HICAPs but you can see why they’re interested – you put together the Tyro health and HICAPs and that would be a great business,”
Shares in Tyro jumped 1.9 per cent to $1.59 on Tuesday while shares in Westpac closed 2.4 per cent higher at $23.98.