Optimal Payments gets go ahead for €1bn Skrill takeover
Optimal Payments came a step closer to its reverse takeover of Skrill yesterday after the firm said it had met several of the conditions necessary for the deal.
The announcement is the latest sign of progress since Optimal stated its intention to conduct the reverse takeover, worth €1.1bn (£791m), in March.
The deal will see Optimal take control of Skrill – an internet based money transferring business – from private equity company CVC Capital Partners and investment manager Investcorp Technology Partners.
Under the terms of the deal, Aim-listed Optimal will offer €720m in cash and 37.5m shares before listing on the London Main Market.
Optimal got shareholder approval for the deal in April and has now received approvals in respect of the transfer of Skrill’s US division from the relevant US regulatory authorities. The firm also confirmed its notification to the FCA for change of controller approval has been completed, with the regulator due to give a decision on the application by 30 July, barring any move by the FCA to use its statutory right to delay the consideration period.
Furthermore, Optimal said it had reached agreements with Bank of Montreal, Barclays and Deutsche Bank to flex the terms of the credit facilities used to fund the purchase.
The new terms will see its current credit facility split in two, with facility A, worth €280m, having its initial margin amended to three per cent, with a further 0.25 reduction when leverage is decreased. Facility A will continue to amortise over five years.
Facility B, worth €220m, will have its margin set at four percent, with further reductions on the same terms as facility A, and is to be paid back in seven years.
Shares in Optimal Payments remained muted, closing up 0.27 per cent at 281.5p yesterday.