Brookfield Asset Management Ltd. has agreed to acquire London—listed Network International Holdings Plc for about £2.2 billion ($2.8 billion) to expand its presence in credit card processing in the Middle East.
(Bloomberg) — Brookfield Asset Management Ltd. has agreed to acquire London—listed Network International Holdings Plc for about £2.2 billion ($2.8 billion) to expand its presence in credit card processing in the Middle East.
The Canadian investment group reached a deal to pay 400 pence per share in cash, according to a statement on Friday. That represents a premium of about 64% to Network International’s closing price on April 12 — the last business day before the start of the offer period.
Brookfield emerged as the frontrunner to acquire the Middle Eastern credit card processor after interest from a consortium including CVC Capital Partners and Francisco Partners cooled, Bloomberg News reported previously.
In its statement, Brookfield said it sees strategic logic in pursuing a combination of Network International and Magnati, the payments business it took control of from First Abu Dhabi Bank PJSC last year. The potential synergies gave the Canadians an advantage over its buyout competitors.
In April, Brookfield made a preliminary offer of 400 pence per share for Network International, topping an earlier 387 pence proposal from CVC and Francisco Partners. The company extended a deadline for its suitors to either make a firm offer or walk away by about a week to June 9.
Shares in Network International have gained about 25% in London amid takeover talks, giving the company a market value of about £2 billion.
Network International’s directors were advised by PJT Partners Inc., Citigroup Inc. and JPMorgan Chase & Co. Brookfield was advised by Morgan Stanley.
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