Equals Group’s Stock Soars 11% amid Buyout Rumors and Dividend Plans

<p>The shares
of <a href="https://www.financemagnates.com/terms/f/fintech/">fintech</a> company Equals Group, which specializes in <a href="https://www.financemagnates.com/terms/p/payments/">payments</a> for enterprises
and SMEs, surged more than 11% on Wednesday, reaching their highest levels
since September. The company is not only considering strategic options that
could include a buyout but has also gained court approval for a capital
reduction. These developments could significantly impact the Equals' future and
its shareholders.</p><p>Equals Group's Strategic
Review in the Wake of Market Speculation</p><p>The Board
of Equals Group plc has acknowledged <a href="https://www.londonstockexchange.com/news-article/EQLS/response-to-market-speculation/16192230" target="_blank" rel="nofollow">recent market rumors</a> and confirmed that it
is conducting a strategic review. As part of this process, the company has contacted
a select group of potential partners, including Fleetcor Europe Limited and
Madison Dearborn Partners, LLC. </p><p>The aim is
to evaluate whether these entities could offer more value to shareholders than
if Equals continues as an independent company.</p><p>"The
Board remains confident in the long-term prospects of the business and believes
that the company is well positioned to create significant value for
shareholders as an independent company. Current trading remains in line with
the Board's expectations," Equals commented in the official filing.</p><p>Capital Reduction and
Dividend Plans</p><p>In addition
to the strategic review, Equals Group plc has received court approval for a
capital reduction. This move has resulted in distributable reserves of
approximately £25 million. </p><p>Consequently,
the Board plans to declare an inaugural interim dividend of 0.5 pence per
share. Subject to shareholder approval, the company expects to offer a total
dividend of 1.5 pence per share for the full year of 2023.</p><p>10% Share Jump</p><p>In response
to the latest news, Equals (LSE: <a href="https://www.financemagnates.com/tag/equals/" target="_blank" rel="follow">EQLS</a>) shares jumped over 11% during
Wednesday's trading session, testing the highest levels since the end of
September. </p><p>At the time
of writing, they were priced at 114 pence per share. It's worth noting that
this is the strongest one-day increase since at least July 2022.</p><p>In
September, the company unveiled its <a href="https://www.financemagnates.com/fintech/equals-group-revenue-hits-45-million-up-from-314-million-last-year/" target="_blank" rel="follow">interim results for the first half of 2023</a>,
revealing a surge in revenue and a record-setting Adjusted EBITDA. The net
profit for the period <a href="https://www.financemagnates.com/fintech/equals-acquires-oonex-and-reports-record-revenues-of-45-million/" target="_blank" rel="follow">reached £4.8 million</a>, a significant jump from the £0.8
million recorded in the corresponding period last year. Earnings per share
(EPS) also saw a notable increase, standing at 2.64 pence, compared to 0.38
pence in the second half of 2022.</p><p>What's Next For Equals?</p><p>While the
strategic review is underway, there is no guarantee that it will result in any
significant changes for the company. Both Fleetcor Europe and Madison Dearborn
Partners have until 29 November to either announce an intention to make an
offer or state that they will not.</p><p>For now,
shareholders are advised to take no action. As a result of these developments,
an "offer period" has commenced for Equals in accordance with the
<a href="https://www.financemagnates.com/tag/takeover/" target="_blank" rel="follow">Takeover Code</a>. The next steps in both the strategic review and the dividend
plans will be announced in due course.</p><p>Therefore,
the coming weeks could be crucial for Equals Group plc and its shareholders.
Whether the company proceeds independently or becomes part of a larger entity,
these developments will have a lasting impact.</p>

This article was written by Damian Chmiel at www.financemagnates.com.