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LONDON - Argentex Group PLC, a UK-based foreign exchange service provider, announced on Thursday that it is in advanced discussions with IFX Payments concerning a potential acquisition offer. IFX Payments, operating under IFX (UK) Ltd, has proposed to purchase all issued and to be issued share capital of Argentex at a price of 2.49 pence per share.
While negotiations are progressing, Argentex has emphasized that there is no certainty that a definitive offer will materialize. However, should IFX Payments present a formal offer in line with the current terms, Argentex’s Board has indicated it would likely recommend that shareholders accept the proposal. Shareholders have been advised to withhold any immediate action until further notice.
Concurrently, to address its short-term financing needs, Argentex has secured a bridging loan from IFX Payments amounting to £6.5 million, bearing an interest rate of 15% per annum. This loan aims to provide the company with the necessary working capital to manage its immediate liquidity requirements. Discussions are ongoing with IFX Payments for additional short-term financial support, which is deemed essential for the company’s continued operations.
The receipt of the bridging loan has been communicated to Argentex’s Liquidity Providers. Despite this interim funding, trading in Argentex’s Ordinary Shares will stay suspended due to the need for substantial additional liquidity support expected within the next week.
In connection with the potential offer, IFX Payments has secured irrevocable commitments from Argentex directors and certain shareholders, who collectively hold approximately 58.26% of Argentex’s issued ordinary share capital, to support a firm offer matching the terms of the current possible offer. These commitments are binding even if a competing offer emerges.
In compliance with the City Code on Takeovers and Mergers, IFX Payments must, by 5.00 p.m. London time on 20 May 2025, either declare a firm intention to make an offer for Argentex or state that it will not pursue an offer. This deadline may be extended with the Takeover Panel’s approval.
The news of these developments is based on a press release statement issued by Argentex with the consent of IFX Payments. Further information will be provided as the situation evolves.
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