PayPoint to Buy Appreciate Group for GBP83 Mln in Shares and Cash

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by Ian Walker

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PayPoint PLC said on Monday that it has agreed to buy Appreciate Group PLC for £83 million ($94.4 million) in shares and cash.

Under the deal, gift cards and rewards Company shareholders will receive 33 pence cash and 0.0190 new PayPoint shares for each share they accept. Based on Friday’s closing price of 580 pence for the UK payments company, the offer values ​​each appreciate share at 44 pence.

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The price is a 69% premium to Friday’s closing price of 26.05 pence.

Those accepting the appreciation will be able to keep the dividend of 0.8 pence declared for the half year ended September 30, in addition to cash and PayPoint shares.

PayPoint Chief Executive Nick Wills said the acquisition provides “a compelling opportunity to acquire a highly complementary business with well-established offerings in the prepayment savings and corporate and consumer gift card and voucher sectors.”

He added that the acquisition will lead to increased earnings and attractive returns to the shareholders.

“PayPoint’s offering represents an attractive premium to Appreciate Group’s shareholders, providing an opportunity to exit most of its shareholding for cash, while participating in a potential reversal of the combined Appreciate Group and PayPoint businesses over the long term. “Appreciate Chairman Guy Parsons said. ,

Write to Ian Walker at [email protected]

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