Network International Gets £2.1 Billion CVC, Francisco Bid

Dinesh Nair and Archana Narayanan, Bloomberg News

(Bloomberg) -- Network International Holdings Plc said it received a non-binding takeover bid from CVC Capital Partners and Francisco Partners valued at about £2.1 billion ($2.6 billion).

The Middle Eastern credit card processor said in a statement Monday that it would be minded to accept the all-cash proposal of 387 pence per share should CVC and Francisco make a firm offer.

That represents a 28% premium to Network International’s Friday closing price. The company’s stock was up 20.5% at 8:08 a.m. in London, giving it a market value of £1.9 billion.

Network International said the latest proposal follows a series of others that had been rejected. It has agreed to provide CVC and Francisco with access to confirmatory due diligence. The private equity firms now have until 5 p.m. UK time on May 11 to announce their intention to make a firm offer.

Bloomberg News reported over the weekend that talks about a takeover of Network International were advanced.

Activity has been heating up in the Middle Eastern payments industry. Last year, Brookfield Business Partners LP bought control of First Abu Dhabi Bank PJSC’s Magnati unit in a deal valuing the operation at as much as $1.15 billion. Dubai-based lender Mashreqbank PSC has also been pursuing a sale of its payments business.

(Updates with shares in third paragraph.)