France-based payments processing company Worldline SA (FR:WLN) is exploring options, including approaching an anchor investor or institutional buyer, to address retail investors’ concerns amid a steep fall in the share price. According to Reuters, the company, which is seeking advice from Morgan Stanley and Rothschild & Co., is trying to steer clear of any potential hostile takeover attempts during this challenging period. The stock was trading up by 1.37% as of writing today.
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Worldline is a payment services company serving customers across multiple industries worldwide.
Worldline Share Price Under Pressure
The Worldline share price lost 60% of its value in 2023. In October 2023, the stock fell 50% on a single day after the company reduced its full-year targets, citing the impact of an economic slowdown in its crucial markets. Year-to-date, the stock is already down 15.6%.
Consequently, the company is keen on bringing an investor to provide the much-needed support to its share price.
Tapping Investors
Over the past week, Wordline’s advisers have begun approaching potential investors, including financial institutions, pension funds, and sovereign wealth funds, to explore the possibility of acquiring a minority stake in the group.
In December, Worldline’s shares gained momentum following reports that French banking giant Credit Agricole Group (FR:ACA) is considering acquiring a stake. A Reuters report also stated that the company might consider divestments as part of its strategy to reassure shareholders. It added that possible disposals could happen in the company’s Mobility division, which includes digital payment solutions for ticketing services.
The significant decline in Worldline’s share price is attracting the attention of global rivals and private equity firms for a potential takeover. However, the French government, which is closely monitoring the situation, would prefer an offer from a France-based entity for Worldline.
Worldline Share Price Forecast
Recently, analysts downgraded their ratings on Wordline stock, reflecting their cautious views.
According to TipRanks consensus, WLN stock has a Hold rating based on nine Hold, four Sell, and two Buy recommendations. The average share price forecast is €16.12, which is 21.75% higher than the current trading level.
