The Tyro Payments Ltd (ASX: TYR) share price is plummeting on news its long-term suitor has thrown in the towel on takeover talks.
Potentia Capital Management has walked away from discussions following nearly four months of due diligence in which the payment provider underwent advanced negotiations and engaged with regulators.
The Tyro share price is $1.255 in early morning trade, 18.24% lower than its previous close.
Let’s take a closer look at the news weighing on the All Ordinaries Index (ASX: XAO) fintech stock today.
All Ords fintech stock tumbles as takeover talks binned
It’s shaping up to be a rough day for Tyro shares. The stock is plummeting 18% in early trade after Potentia withdrew from change of control discussions.
Potentia was granted the opportunity to pore over the All Ords company’s books way back in January, with the fintech company hoping granting it access could encourage it to improve its previous offer.
The suitor put forward a bid for the payment solutions provider in September 2022, first offering $1.27 per share before upping its bid to $1.60 per share.
However, both offers fell short of Tyro’s expectations. The company initially scrapped takeover talks with Potentia, as well as then-competing suitor Westpac Banking Corp (ASX: WBC), in December.
Now, it’s Potentia’s turn to pull the plug. Tyro chair Fiona Pak-Poy commented on the news weighing on the company’s share price, saying:
The board and management team have worked with commitment and in good faith to facilitate a potential change of control transaction to be put to our shareholders for consideration.
We have appreciated Potentia’s engagement and are disappointed that they were ultimately unable to deliver a revised offer.
But the last few months haven’t been fruitless, Pak-Poy noted. The company delivered “substantial operational achievements” as it simultaneously engaged in the “long and drawn-out discussions”.
Such achievements included launching Tyro Pro, Tyro Go, and Tyro BYO. Not to mention, the company bolstered its full-year guidance last week.
Tyro share price snapshot
Today’s tumble sees the Tyro share price underperforming the All Ords over recent months.
The stock is currently 9% lower than it was at the start of 2023. Though, it is 18% higher than it was this time last year.
Comparatively, the All Ordinaries Index has lifted 5% year to date and 1% over the last 12 months.
