EML Payments share price lifts on confirmed takeover talks

A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

The EML Payments Ltd (ASX: EML) share price is higher on Monday after the company confirmed it recently received takeover interest from multiple parties.

And while takeover talks have since come to an end, the news has seemingly excited the market.

At the time of writing, the EML share price is $1.025, 0.49% higher than it was at the end of Friday’s session.

Though that’s notably lower than its intraday high. The stock peaked at $1.135 this morning, representing an 11% gain.

Let’s take a closer look at what’s going on with the S&P/ASX 200 Index (ASX: XJO) tech share today.

EML share price rises on previous takeover interest

The EML share price is in the green after the company responded to media reports, admitting two parties had shown acquisition interest last month.

The company said it had shareholders’ best interests front of mind when considering the proposals. However, takeover talks with both parties have since ended.

It comes just months after similar media reports led EML to admit it had been in takeover discussions with Bain Capital.

It’s also only a week since the company’s former CEO walked away from the top job. Emma Shand has stepped up to the helm following Tom Cregan’s shock departure.

It seems reporting by the Australian Financial Review (AFR) was the catalyst for today’s announcement.

On top of reporting on takeover interest, the publication also noted apparent “friction” within the company’s leadership. Some insiders reportedly feel the EML board has been reluctant to engage with talks that could see it removed from the ASX.

In today’s release, the company said:

The board of EML is excited about the appointment of Emma Shand as the company’s new group CEO and for the future prospects of EML under Emma’s leadership.

The EML share price has tumbled around 70% since the start of 2022. For comparison, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has fallen 33%.

The post EML Payments share price lifts on confirmed takeover talks appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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