Fiserv — a U.S.-based financial services and technology firm — has upped its offer for Monitise to about $98 million in the hopes of gaining the backing of the U.K.-based firm’s investors. A previous offer of around $91 million was found insufficient from Monitise’s investors, led by Cavendish Asset Management.
The new offer now includes a premium of 34.8 percent over Monitise’s closing price on June 12, the last full trading day before Fiserv put its offer on the table.
According to reports, Monitise’s board had unanimously recommended the upped offer — following Fiserv’s urging. Fiserv pointed out that if the offer were rejected, the board would need to consider raising further capital and divestment of the business, were the deal to fall through.
Monitise’s area of strength in financial service involves linking banks and mobile operators to better facilitate mobile payments, purchases and money transfers. But free mobile payments systems offered by Apple and Alphabet, among others, have created trouble in that business line.
Banco Santander, Monitise’s top shareholder with a 4.67 percent stake, likes the deal and has submitted a letter of intent to back the deal; major shareholder Visa has done the same.
Counting in Monitise’s directors’ shares, Fiserv has letters of intent or irrevocable undertakings for 229.6 million shares, representing 9.9 percent of Monitise’s existing issued share capital.
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