Brookfield Asset Management confirms $2.7bn offer to acquire UAE's Network International 

UAE-based payments provider Network International has recently received a $2.7 billion takeover proposal from Brookfield Asset Management. This news came just after a competing offer was made by private equity firms CVC Capital and Francisco Partners. The London listed firm announced that it had received a preliminary, non-binding proposal regarding a potential cash offer of 400 pence per Network share for the entire issued and to be issued share capital of Network.

The proposed offer from Brookfield comes after the firm bought a 60% share in the First Abu Dhabi Bank's (FAB) payments processing business, Magnati, last year. The Board of Network International is currently evaluating the Brookfield Proposal with its financial advisers and will make a further statement in due course. The company also stated that there is no certainty that an offer will be made by Brookfield, nor as to the terms on which any offer might be made.

Network International operates in more than 50 countries and serves over 150,000 merchants and 200 financial institutions. The payments provider manages 18 million payment credentials, according to its website. Dubai-based lender Emirates NBD holds a 6% stake in Network International.

The proposed acquisition by Brookfield would provide the firm with a significant presence in the Middle East's payment processing industry. The move would also enable Network International to benefit from Brookfield's extensive global network and financial resources.

"The Board of Network is currently evaluating the Brookfield Proposal with its financial advisers and a further statement will be made in due course. There can be no certainty that an offer will be made by Brookfield, nor as to the terms on which any offer might be made," Network International said in a statement.

In response to the news, Network International's shares rose by over 14% to 415.5 pence. The company's share price has risen by more than 40% since it was first listed on the London Stock Exchange in 2019.

The proposed acquisition by Brookfield would mark a significant development in the global payments industry. It would enable Brookfield to expand its presence in the fast-growing Middle Eastern market while providing Network International with access to Brookfield's extensive resources and network. The situation is still evolving, and it remains to be seen whether Brookfield will make a formal offer for Network International, or if it will be outbid by CVC Capital and Francisco Partners.

source: Zawya