Nuvei is paying $7.40 a share in cash for Payoneer, US$2.75B equity. How do you read a premium that is still below the debut valuation?
Nuvei, the Canadian payments group, agreed to buy Payoneer for US$7.40 per share in cash, which values the equity at US$2.75B. Payoneer is a Nasdaq-listed cross-border payments company. The reporting says the offer is a premium to the market price but below the valuation Payoneer had at its Wall Street debut.
That last part is what interests me for event-driven investing. Holders who bought at the debut valuation are underwater against the offer, and those holders may not want to vote yes. I do not know how the stock is trading against the offer, so I am asking rather than telling.
How do you size a position when the base of holders is sitting on losses? Does that raise the chance of pushback on the vote or a bump, or does the shareholder base usually just take the cash? And what do you check first, the vote threshold, the largest holders, or the regulatory path for a cross-border payments deal?
