UK card operator and payments processor Retail Decisions has agreed to a £168 million cash takeover bid from European private equity firm Palamon.
ReD said last Thursday that it was in "advanced discussions" with a party regarding a possible offer. The news sent the company's stock soaring and by the end of the day ReD shares stood at 193.5 pence, up 36.25 pence.
Palamon has formed a bid vehicle called RD Card for the offer. Under the takeover deal ReD shareholders will receive 205 pence per share in cash, which is a 30% premium to the vendor's closing share price last Wednesday, the day before ReD said it was in advanced takeover talks.
According to reports, RD Card has received undertakings to accept the offer from shareholders representing 25.29% of Retail Decisions' share capital. The bid proposals will be put to ReD shareholders at an EGM in mid-November.