Shares in OFX Group Ltd (ASX: OFX) have racked up double-digit gains after the company said it would kick off a strategic review into the future of the business.
The company, in a statement lodged with the ASX on Thursday, said it had started a "strategic review to explore a range of organic and inorganic options seeking to maximise value for shareholders''.
The company went on to say:
As a pioneer of cross border payments, OFX has regularly been in discussion with industry participants about the shape of the industry, trends and opportunities, including inorganic opportunities. OFX's acquisition of Firma originated from such dialogue. Recently, OFX has received an increasing level of inbound inorganic interest. The Board has determined that it is in the best interests of shareholders to comprehensively consider any approaches through a structured review process, and compare them to OFX's organic growth opportunities.
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We're worth more, board says
The company said the board did not believe the value of OFX was reflected in the current share price, "noting OFX's robust and well established global operating infrastructure, strong cash generation and growth prospects through execution of its 2.0 strategy that plays into a very large potential global total addressable market''.
The company added:
OFX has appointed Goldman Sachs Australia as its financial advisor in relation to the Strategic Review to support the Board and management team in assessing the value that could be created under various strategic options, including a potential sale. OFX will seek to carry out the Strategic Review in an efficient manner that minimises operational distraction from the continued execution of the OFX 2.0 strategy.
The company also provided a trading update for the current quarter to date, saying revenue for the quarter was expected to be 11.5% lower at $29.4 million, compared with the same period last year.
Exec on the move
The company also announced on Thursday that its Chief Financial Officer, Selena Verth, was leaving after more than eight years with the group.
The company said:
A search for a new CFO has commenced and Ms Verth will remain with OFX until 30 June 2026 to support the continued execution of the 2.0 strategy, as well as the Strategic Review process and an effective handover.
OFX Group shares were 13.5% higher in afternoon trade at 54.5 cents. The shares are well down on their 12-month high of $1.47 and not far off their low for the period of 46 cents.
The company was valued at $111.2 million at Wednesday's close.
