CAB Payments board rejects Helios consortium’s possible bid as undervalued

An update from CAB Payments Holdings Limited ( (GB:CABP) ) is now available.

CAB Payments’ independent board has rejected as opportunistic and undervalued a possible cash and share offer from the Helios Consortium to acquire the 54.89% of the company it does not already own at USD 1.15 per share, a premium of less than 17% to the pre-offer price. The board, which continues to advise shareholders to take no action while no firm offer exists, argues the proposal fails to reflect recent trading momentum, including expected 2025 total income of £119 million and a 53% share price rise over six months.

Under a refreshed leadership team led by CEO Neeraj Kapur and CFO James Hopkinson, CAB Payments has opened licensed offices in New York and Abu Dhabi, broadened its client base and product range, and strengthened infrastructure such as access to ACH rails and enhanced USD and EUR liquidity. The board says these strategic advances, coupled with the firm’s strong position in regulated, hard-to-reach markets and potential role in future digital currencies, underpin confidence in long-term value and its resistance to the current approach, as the Helios Consortium faces a 2 March deadline to decide on a firm bid.

The most recent analyst rating on (GB:CABP) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on CAB Payments Holdings Limited stock, see the GB:CABP Stock Forecast page.

Spark’s Take on GB:CABP Stock

According to Spark, TipRanks’ AI Analyst, GB:CABP is a Neutral.

The score is primarily supported by strong technical momentum (price above key moving averages with positive MACD). This is offset by only moderate financial performance due to the sharp 2024 revenue drop and volatile operating and cash-flow history, and a relatively high P/E valuation with no dividend yield provided.

To see Spark’s full report on GB:CABP stock, click here.

More about CAB Payments Holdings Limited

CAB Payments Holdings PLC is a UK-based payments group focused on cross-border payment services, particularly into hard-to-reach and emerging markets. The company leverages deep relationships with regulators and central banks and has expanded its global footprint with newly licensed offices in New York and Abu Dhabi, while enhancing its product set with new deposit, derivative and liquidity solutions.

Average Trading Volume: 393,641

Technical Sentiment Signal: Buy

Current Market Cap: £195.7M

For detailed information about CABP stock, go to TipRanks’ Stock Analysis page.