The Tyro Payments Ltd (ASX: TYR) share price is under pressure on Monday morning.
In early trade, the payments company's shares are down 22% to $1.15.
What's going on with the Tyro share price today?
Investors have been selling down the Tyro share price following the release of a takeover update.
According to the release, the company has ended takeover talks with both Potentia and Westpac Banking Corp (ASX: WBC).
The release notes that following extensive discussions with these parties and careful consideration by the board with assistance from its external advisers, it has decided to end current discussions in relation to a possible change of control transaction.
This is because it believes those discussions have not resulted in a proposal that fairly values Tyro. That's despite Potentia lifting its offer to $1.60 per share, which values the company at an enterprise value of approximately $875 million on a fully diluted basis.
Management notes that this is still materially lower than where the Tyro share price has traded this year. For example, its 52-week high is almost double Potentia's offer price at $2.93.
Westpac has also notified the company that it has decided that submitting an offer to Tyro is not in the best interests of its shareholders at this time.
What now?
Tyro advised that it remains open to engaging with any credible change of control proposal it receives that represents compelling value for shareholders.
For now, though, the company's board and management will continue to focus on executing on Tyro's current strategy.
Positively, Tyro confirms that it is tracking towards the top end of guidance for all operating metrics and is making good progress executing on its three strategic priorities for FY 2023. These are Tyro Go, Tyro Pro, and automated customer onboarding.
