Western Union Makes Takeover Approach to OzForex

Australian broker is well placed for independent growth but will consider the offer, says board of directors

Australian forex broker OzForex said US money transfer major Western Union has approached it with an offer to acquire 100 percent of the company at a price between AUD 3.50 ($2.51) and AUD 3.70 ($2.65) per share.

The offer, worth up to AUD 888 million in total ($636.4 mln), is conditional on access to due diligence, keeping the company’s current management, and the regulatory approvals applicable in such deals.

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OzForex said its board of directors will review the preliminary offer and evaluate it, after which it will inform shareholders and the market about its recommendation. The company noted in its statement that without the takeover offer, the forex broker is well placed for further growth on its own.

OzForex reported record-high financial metrics for the first-half of its financial year, with revenues reaching $10 billion, up 34 percent on the year, and operating profits at $53.6 million, up almost 30 percent on an annual basis.

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