Philip Hammond’s Railsr floats merger with Equals Group
Railsr, the fintech company chaired by former chancellor Philip Hammond, has confirmed it’s been running the rule over rival Equals Group.
Equals confirmed that as part of an ongoing strategic review, it had received an indicative non-binding proposal from Railsr.
In November, the £225m fintech firm announced it was undertaking a strategic review to assess the future of the company and extended deadlines on talks for a potential buyout in January.
The £225m fintech firm received an offer from both Railsr and Towerbrook Capital Partners, a $22.8bn (£18bn) investment management firm spun out from Soros Fund Management in 2005.
Railsr was rescued from collapse a year ago after it was snapped up by a group of investors led by D Squared Capital, having previously run into cash troubles and regulatory difficulties over the previous year.
The firm has since eyed up expansion, raising around £20m from investors in October.
Hammond was announced to be starting at Railsr last month after former chair Rick Haythornthwaite moved to become chair of Natwest on 15 April.
Hammond served as Chancellor under Theresa May between 2016 and 2019, and previously held cabinet posts as foreign secretary, defence secretary and transport secretary.
Equals Group’s stock price has risen by more than nine per cent this morning on the news.
“There can be no certainty that any firm offer for the company will be made, nor as to the terms on which any firm offer, if made, might be made,” Equals said.
Madison Dearborn Partners, a US-based private equity firm, and other suitors are also examining offers for the company, according to reports.
According to the rules of the UK takeover code, Railsr and Towerbrook must now announce a firm intention to make an offer or not by 17 April.