UK-based payment processor Worldpay (WPG) scorched to the top of the FTSE 100 leader board as takeover gossip swirled around the City. Shares in the company leapt 24% to 395p, adding more than £1.5bn to the company's market value.
Early shares buying encouraged Worldpay to issue a statement at 9.24am on Tuesday confirming two separate approaches. One enquiry has come from US payment processing specialist Vantiv, the other from investment banking group JP Morgan Chase.
BACK STORY
Worldpay is a spin-out from the Royal Bank of Scotland (RBS) back in 2011. In 2015 the company became one of the London market's largest initial public offerings (IPO) with a market value of £4.8bn. Its market cap following today's jump stands at £7.92bn.
The company reported a massive jump in underlying pre-tax profits last year (to 31 December 2016), coming in at £327.4m versus the £188.1m chalked-up in 2015.
WHAT'S NEXT
Worldpay has set out deadlines under UK takeover rules which Vantiv and JP Morgan must follow if they wish to proceed. The company will issue further announcements if and when ‘appropriate’, although usual caveats apply - that there are no guarantees a deal will be struck.
Worldpay is not the only digital payments processor to be courted recently. Danish specialist Nets confirmed to Shares that it has been approached by potential buyers but would not confirm who these were, although market chatter has homed in on credit card giants Visa and Mastercard.
