Brookfield Eyes £2.1 Billion Network Bid, Trumping CVC Proposal

Brookfield Asset Management Ltd. has submitted a £2.1 billion ($2.6 billion) takeover proposal for Middle Eastern credit card processor Network International Holdings Plc, topping a rival buyout consortium.

(Bloomberg) — Brookfield Asset Management Ltd. has submitted a £2.1 billion ($2.6 billion) takeover proposal for Middle Eastern credit card processor Network International Holdings Plc, topping a rival buyout consortium.   

The Canadian investment giant made a “highly preliminary,” non-binding proposal of 400 pence per share, Network said in a statement Friday, confirming an earlier Bloomberg News report. The potential offer is 11% above Network’s Thursday closing price in London and represents a 64% premium to its last close before Bloomberg News first revealed takeover interest in the company. 

Network said earlier this week it received a takeover proposal of 387 pence per share from a consortium of CVC Capital Partners and Francisco Partners. The company said it would be minded to accept the proposal should the suitors make a firm offer and agreed to provide confirmatory due diligence. 

Brookfield has an existing presence in the industry and has been an active investor in the Middle East. Last year, an arm of Brookfield bought control of First Abu Dhabi Bank PJSC’s Magnati payments unit in a deal valuing the operation at as much as $1.15 billion. 

Network’s board is evaluating the Brookfield proposal, which is subject to due diligence, according to Friday’s statement. Brookfield has until 5 p.m. on May 19 to announce plans for a firm offer, while the CVC consortium has until May 11. 

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