OFX Group ends acquisition deal with Equals Group
Key points
- Equals Group failed to confirm its $1 per share acquisition proposal, terminating the binding process deed.
- The market responded to the news, leaving OFX Group stock trading at $0.36 following the update.
- Net operating income reached $45.3 million in Q2 FY27 despite persistent weak business confidence.
OFX Group (ASX:OFX) announced the termination of its transaction process deed with Equals Group after the UK-based firm failed to reconfirm its proposed $1 per share acquisition offer by the scheduled deadline.
Net operating income fell 9.6% compared to the prior corresponding period, though it rose 3.1% quarter-on-quarter to $45.3 million.
The announcement did not include executive comments in the provided disclosure.
Corporate revenue grew 6.9% quarter-on-quarter to $28.4 million, while enterprise revenue fell to $2.8 million relative to a strong first quarter.
Following the announcement, the OFX Group share price was down at $0.36.
The group noted that corporate active clients dropped 5.0% compared to the previous quarter, driven primarily by runoff from Firma and OLS client bases.
Discussions between OFX Group and Equals Group are continuing on a non-exclusive basis, with shareholders advised that no action is required at this stage.
