The EML Payments Ltd (ASX: EML) share price is up more than 11% at the time of writing after the company confirmed it has been in takeover talks.
In a statement to the ASX, EML noted media speculation that the business has been subject to takeover interest from private investment group Bain Capital.
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How close is a takeover for EML?
EML confirmed that it had been in talks with Bain Capital earlier in the year about a potential takeover proposal. However, those discussions have now ceased.
The board of EML said that it would always consider proposals presented to the company and that it's fully committed to acting in the best interests of shareholders. The goal of EML's board is to maximise value for shareholders, the company said.
While no deal happened, EML disclosed that it appointed Goldman Sachs as its financial advisor and Herbert Smith Freehills as its legal advisor.
What happens now?
According to reporting by the Australian Financial Review, sources indicated that Bain has walked away "for now" because of the high price tag after looking at the due diligence numbers.
Time will tell whether this activates other interested parties to start having a look at the global payments business.
The EML share price has fallen by 10% in 2022 to date, including today's rise.
However, over the last year, the EML share price still registers a decline of 48%.
