Fiserv lifts offer price for Monitise in bid to woo reluctant shareholders
07 August 2017 | 4639 views | 1
Fiserv has raised its offer for the acquisition of ailing UK mobile outfit Monitise by £5 million to £75 million in a last-ditch attempt to convince recalcitrant shareholders to come onboard.
Shareholders in Monitise had railed against the original 2.9 pence per share price offered by Fiserv, threatening to withdraw support for the bid in the absence of a more meaningful valuation.
While Visa and Santander both agreed to sell their holdings at the initial price, representing approximately ten percent of Monitise's ordinary share capital, Fiserv has been moved to raise its offer to 3.1 pence per share in a final bid to win over support for the takeover.
Fiserv points out that in its latest trading update at end-July, that revenue for Monitise continues to decline and outstrip cost-cutting initiatives. Having failed to find a single buyer for its 'next-generation' FINkit software package, the company warned the market that revenues for 2018 are expected to dip below year-end 2017 takings.
"Furthermore, on a divisional basis, all business units (excluding Content) experienced revenue declines for the financial year ended 30 June 2017 as compared to the prior year period and there were no FINkit contracts signed in the period," states Fiserv.
With cash balances dwindling, the Monitise board have stated that were the acquisition not to take place, the company will need to consider "raising further capital, the divestment of businesses, and the overall strategy of the Group".
Fiserv says the terms laid out represent its final offer for the group and will not be raised unless a third party steps in with an improved price.