The value of shares in Australia’s Tyro Payments plunged by nearly 20% on Monday after the company revealed that private equity firm Potentia Capital had pulled the plug on a proposed deal to acquire the business, according to a report by Reuters.
The value of shares in Australia’s Tyro Payments plunged by nearly 20% on Monday after the company revealed that private equity firm Potentia Capital had pulled the plug on a proposed deal to acquire the business, according to a report by Reuters.
Potentia first offered to buy Tyro for AUD1.27 per share in September, before improving its offer to AUD1.60 in December giving the company a valuation of AUD875 million.
While Tyro rejected both offers on the basis that they undervalued the company, Potentia was granted due diligence while it considered making a higher offer.
According to a statement issued by Tyro, Potentia’s decision to withdraw, came after it engaged in “extensive negotiation” of material commercial terms, and that its was “disappointed” that a revised offer had not been made.
