Travelex owner Finablr agrees takeover offer after fraud scandal
Travelex owner Finablr today said it has approved a takeover offer from software group Prism Advance Solutions in a deal that will settle the fraud-hit payment firm’s debts.
The deal will see Prism acquire 100 per cent of Finablr and its subsidiaries, though the companies did not disclose the value of the transaction.
The agreement will provide working capital for UAE- based Finablr, while Prism said it would restructure the group’s board.
“After months of hard work under very trying liquidity conditions compounded by the impact of the Coronavirus on our operations, I am excited to now go forward with Prism,” said Bhairav Trivedi, group chief executive of Finablr.
The takeover deal will provide some security for the troubled forex company, which has suffered a tumultuous period since the discovery of more than $1bn in undisclosed debts and reports of unauthorised loans.
The scandal led to the suspension of its shares and two of its divisions have been shut down by UK tax authorities pending an investigation.
Indian billionaire BR Shetty in August stepped down from the company he founded as a result of the controversy.
Finablr boss Trivedi said the firm was entering a new chapter in its history, describing the takeover as a “game-changing transaction in the Middle East”.
Guy Rothschild, co-founder and director of Prism, said: “We acknowledge that it’s going to be a challenging journey and that there would be difficulties along the way, but we are confident that with the support from all parties involved we will realise Finablr’s full potential.
“Finablr offers a huge opportunity in the digital payments space across multiple emerging markets and its assets and proprietary technology positions it for further global growth.”