London faces yet another exit as listed fintech extends takeover talks
London-listed fintech Equals Group has extended a ‘put-up-or-shut-up’ deadline for a takeover today as it mulls becoming the latest firm to leave London’s markets this year.
The AIM-listed payments firm announced it was undertaking a ‘strategic review’ in November and had kicked off talks with US-based private equity group Madison Dearborn partners over a potential sale.
In a statement to the market this morning, Equals said it was now extending the talks with the buyout firm as it decides whether to shift back into private hands.
“As part of the strategic review, discussions are ongoing between Equals and Madison Dearborn Partners and, to allow further time for these discussions to take place, the board of Equals has requested that the panel on takeovers and mergers extends the PUSU deadline further,” bosses said.
The two firms now have until 5pm on the 21st February to strike a potential deal.
Madison Dearborn’s swoop on Equals came amid a flurry of takeover bids on London firms in the second half of last year as buyers looked to capitalise on depressed valuations in the capital.
A total of 40 firms were either taken private or agreed to a takeover bid last year, and analysts have warned of another wave of take-privates to come as markets begin to stabilise.
In a note to investors earlier this month, head of research at Peel Hunt Charles Hall warned the “the pace of de-equitisation is relentless and will likely continue unless action is taken and impacts quickly.”
“This is driven by the low UK valuations, which makes it an attractive hunting ground for acquirors and is a key factor behind the dearth of IPO activity,” he added.
Private equity firms are also said to have been lining up advisers and gearing up for a deals offensive in the opening months of the year.