Shares in UK mobile payments group Monitise rose close to 22% today after the company confirmed late last week that it had received a number of expressions of interest from potential buyers.
That revelation followed an announcement on 22 January that…
Shares in UK mobile payments group Monitise rose close to 22% today after the company confirmed late last week that it had received a number of expressions of interest from potential buyers.
That revelation followed an announcement on 22 January that Monitise had mandated Moelis & Co and Canaccord Genuity to undertake a strategic review prompted by the company’s poor performance.
Monitise’s share price has plummeted 75% over the past year as the AIM-listed business has issued a number of profit warnings.
The company has said it expects losses of £40m to £50m this year, but described itself last week as well funded and debt free, with £129 million of cash on its balance sheet.
Monitise’s board said the company may benefit from a sale to another business, which could leverage its “capabilities for digital commerce enablement to significantly accelerate the growth of the business and take maximum advantage of the growth opportunities in the market today”.
Last September, US payment card giant Visa hired JP Morgan to review options for its 5.5% stake in Monitise, leading the London-based business’ stock to fall 30%. Visa secured a 14.4% interest in Monitise back in 2009.
