Worldline is reportedly taking action to address its recent share price slump and reassure shareholders.
In an effort to restore investor confidence, the Paris-based payments group has engaged the services of Morgan Stanley and Rothschild & Co. to develop a defense strategy and explore options, Reuters reported Tuesday (Jan. 16), citing unnamed sources.
Reached by PYMNTS, a Worldline spokesperson declined to comment on the report.
The decline in Worldline’s share price can be attributed to the reduction of its financial targets in October due to concerns among German regulators about the company’s money-laundering controls, according to the report.
This cut Worldline’s share price more than half, causing alarm among investors and attracting the attention of activist investor BlueBell, the report said.
To counter the share price slump and potential hostile takeover threats, Worldline has enlisted Morgan Stanley and Rothschild & Co. to consider various options, including the involvement of an anchor investor to support the stock. They have reached out to French financial institutions, pension funds, and sovereign wealth funds to gauge their interest in acquiring a minority stake in the company.
In the event that Worldline’s efforts to restore investor confidence do not yield satisfactory results, the company may consider a friendly takeover by a bidder acceptable to the French government, according to the report. While the likelihood of a takeover at this stage is considered low, Worldline is exploring all available avenues to safeguard its interests.
Worldline is also focusing on corporate governance matters, including changes in management and finding a replacement for Chairman Bernard Bourigeaud, who died in December, the report said.
Additionally, Worldline is considering asset sales, particularly from its Mobility division, which includes digital payment solutions for ticketing services, per the report. These potential disposals are contingent upon securing a cornerstone investor.
It was reported on Dec. 1 that French lender Credit Agricole was considering acquiring a stake in Worldline. The move by Credit Agricole was seen as an attempt to stabilize its struggling payments partner.
Reached by PYMNTS at the time, both Credit Agricole and Worldline declined to comment on the report.
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