Market Tracker weekly bulletin – 21 March 2019

Market Tracker weekly bulletin – 21 March 2019

A round up of key developments in corporate transactions covered by Lexis®PSL Corporate and Market Tracker this week, including an update on Visa’s bid for cross-border payments specialist Earthport, and a focus on placing and open offers in 2018.

Takeovers

Mastercard gives up on bid for Earthport

The once recommended £233 million offer by MasterCard International Inc. (Mastercard) for Earthport plc (Earthport) lapsed on 8 March 2019 due to insufficient shareholder support. Rule 10 of the Takeover Code requires the acceptance condition of an offer to be set at shares carrying over 50% of the voting rights in the target. The total number of Earthport shares that Mastercard counted towards the satisfaction of the acceptance condition was 0.29% of Earthport’s issued ordinary share capital. The acceptance condition was not satisfied so the offer could not be declared unconditional and therefore lapsed.

Earthport had previously withdrawn its recommendation of Mastercard’s offer after it received an increased offer from Visa Inc. (Visa) for £247 million. On 13 March 2019, Visa announced that their offer had been extended until 30 April 2019 and that they had received acceptances of 41.02% of the issued ordinary share capital of Earthport which count towards satisfying the acceptance condition to the offer. The Visa offer remains ongoing and the Market Tracker team will continue to monitor developments in this transaction.

In focus: Open offers 2018

Lexis®PSL Market Tracker reviewed a total of 169 secondary offerings on AIM and the Main Market during 2018, the scope of which included all offers for subscription, placings, placing and open offers, and rights issues raising in excess of £10 million in gross proceeds for the company. The research has been conducted as part of our upcoming ECM Trend Report, which analyses IPOs and secondary offers over the last year, reviewing key developments and identifying emerging trends in market activity.

In the bulletin this week, we focus on open offers, a deal type which appears to

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Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.