Westpac ends takeover talks with Cannon-Brookes backed Tyro Payments

Westpac has ended its takeover talks with Tyro Payments, saying it would not be in the interests of the bank’s shareholders to table an offer for the fintech.

Meanwhile, Tyro has also rejected a sweetened offer for the company from a consortium of bidders led by Potentia Capital, which raised their bid to $1.60 a share.

Tyro, a rival to the big four in eftpos payments that has Mike Cannon-Brookes as its biggest shareholder, has been in play during recent months after Potentia tabled a bid for the company in September, an attempt that was rebuffed as opportunistic. Cannon-Brookes has signalled he is open to selling his stake in Tyro, which is led by chief executive Jon Davey.

In October Westpac appeared to be joining the contest, when it said it was in talks about a potential buyout, but on Monday morning Westpac said it had concluded not to proceed with a deal.

“Westpac has now undertaken due diligence on Tyro and has decided that submitting an offer is not in the best interests of Westpac shareholders at this time,” Westpac told the ASX.

Tyro also said its board had decided to cease all discussions with potential buyers of the company, as these talks had failed to result in an acceptable offer for the business. It also said Potentia had raised its bid for the company too $1.60, valuing the business at about $875 million.

Tyro’s board said the latest proposal still “significantly” undervalued the company.

More to come