Western Union Offers as Much as $632 Million for OzForexby
Cash bid is up to 42 percent higher than last stock price
OzForex's brands include CanadianForex, USForex and NZForex
Western Union Co. offered as much as A$888 million ($632 million) in cash for OzForex Group Ltd., the provider of online international payment services whose brands include UKForex and USForex.
Western Union proposed paying between A$3.50 and A$3.70 a share, Sydney-based OzForex said in a statement Thursday. That’s as much as 42 percent above OzForex’s closing stock price on Wednesday. Shares in OzForex, which said it will consider the offer, surged 30 percent to A$3.37 at 11:38 a.m. in Sydney.
Western Union has spent $1.1 billion on five acquisitions since the start of 2011, according to data compiled by Bloomberg. OzForex listed in Sydney in late 2013 at A$2 a share.
OzForex “will update its shareholders and the market following consideration” of the proposal, it said. There’s no certainty of a binding offer, it said.
The conditions of Western Union’s takeover proposal include gaining access to OzForex’s accounts and retaining management. Macquarie Group Ltd. and Clayton Utz are advising OzForex.