(Reuters) -Cross-border payments provider IFX Payments said on Monday that it is considering withdrawing its takeover offer for Argentex, just days after the British currency risk management company
IFX Payments mulls withdrawing takeover offer for UK's Argentex
(Reuters) -Cross-border payments provider IFX Payments said on Monday that it is considering withdrawing its takeover offer for Argentex, just days after the British currency risk management company appointed administrators due to a funding shortfall.
Argentex, one of the early casualties of market turbulence sparked by trade tensions, said on Friday that it had decided to appoint administrators after its main trading unit halted operations due to a failure to secure funding.
The company experienced a near-total collapse in market value after it suspended trading in April. It later agreed to a takeover deal with UK-based IFX, under which shareholders would receive 2.49 pence per share, valuing Argentex at about 3 million pounds ($4 million).
In May, Argentex said it had secured a 20-million-pound loan from IFX and revealed that its finance chief Guy Rudolph had resigned along with several board members.
IFX said on Monday that under the terms of the agreed deal, it reserved the right to withdraw its offer for Argentex if any insolvency process was initiated, pending consultation with relevant authorities.
($1 = 0.7445 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Sherry Jacob-Phillips)
