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Private equity firm Helios Investment Partners LLP is moving to pull CAB Payments off the London market in a proposed $292 million transaction, arguing the embattled cross-border payments company would fare better away from the glare of public trading.

The Helios CAB Payment proposal offers $1.15 in cash per share for CAB Payments Holdings PLC, valuing the FTSE All-Share-listed company at $292 million. The bid comes after a turbulent stretch for CAB, whose shares have tumbled sharply since its highly anticipated 2023 debut.

Board Rejects Earlier Offer

Helios disclosed that CAB’s board had already rejected a lower $1.05-per-share approach on Jan. 24. On Monday, the board described the latest overtures as “highly opportunistic” and said they “fundamentally undervalue” the business. As a result, the proposals were turned down.

The newest indication of interest represents a premium of less than 17% to CAB’s closing price of 72 pence on Jan. 30. Shares were trading at about 72.20 pence ($1) at Friday’s close. During Monday morning trading, the stock rose nearly 3.50% in response to the takeover interest.

From IPO Darling to Market Struggles

CAB Payments’ July 2023 listing was once heralded as a rare bright spot for London’s struggling IPO market. But the initial celebration quickly gave way to market headwinds.

Just three months after going public, the company issued a profit warning in October, citing volatility in African currencies that dented earnings. Since then, its shares have plunged more than 70%, erasing much of the optimism that surrounded its flotation.

Helios, a London-based private equity firm with a strong focus on African investments, has been CAB’s largest shareholder since the IPO and currently holds a 45.11% stake.

In announcing the proposed deal, Helios said it believes CAB’s long-term prospects would be better served under private ownership. Like a ship navigating choppy seas, the firm suggested the payments business might chart a steadier course outside the scrutiny and short-term pressures of public markets.

Offer Structure and Shareholder Options

The Helios consortium — composed of several of the firm’s funds — is making the approach with legal advice from Akin Gump Strauss Hauer & Feld LLP and financial counsel from N.M. Rothschild & Sons Ltd.

Under the proposed structure, existing shareholders would be given a choice: accept a full cash exit at $1.15 per share or roll over their holdings into unlisted shares in CAB. Helios said the offer is designed to provide investors with flexibility, allowing those who wish to remain invested to participate in the company’s future growth through the private vehicle.

Helios also said it has received non-binding support for the proposal from Eurocomm Holding Ltd. Combined with Helios’ own stake, that backing represents 50.33% of CAB’s shareholders.

Countdown Under Takeover Rules

Under the U.K.’s Takeover Code, Helios has until March 2 to either make a firm offer or walk away from the deal.

As the clock ticks, the Helios CAB Payment saga highlights the delicate balance between public market pressures and private equity patience — a tension that can redefine a company’s destiny almost overnight.