Argentex Confirms ‘Advanced Discussions’ with IFX Payments Regarding Takeover Proposal

In a statement, the currency risk management firm said it had received non-binding indicative proposals from three potential bidders: IFX Payments, Lumon Acquisitions (a Pollen Street Capital vehicle), and Terry Clune with Harry Adams. 

However, the Board has “unequivocally rejected” the proposals from Lumon and Clune/Adams, while it is continuing talks with IFX Payments over a possible full acquisition.

Argentex cautioned that no firm offer has yet been made and “there can be no certainty” that a deal will materialise. 

Argentex revealed it is also in discussions with IFX Payments over a bridging loan to address its “near-term liquidity needs.” 

The company said that finalising the loan is critical to its ongoing solvency.

The update follows Argentex’s release on Tuesday. The company requested a trading suspension after warning that a sharp devaluation of the US dollar, linked to policy announcements by President Trump, had triggered significant margin calls on its FX forwards and options. 

These developments caused a “rapid and significant decline” in the firm’s short-term liquidity.

Argentex said discussions continue with its principal liquidity provider, and that without immediate support, the company would be forced to take immediate steps to secure the company’s future and protect value in the business for the Company’s creditors and other stakeholders.”

Under UK Takeover Panel rules, IFX Payments has until 5.00 p.m. on 20 May to announce a firm intention to bid or walk away.