Monitise holders told: Back bid or feel more pain

Monitise, a former darling of London’s fintech scene, today warned shareholders they face further value destruction if they vote against Fiserv’s £70 million takeover offer.

The AIM-listed mobile payments company, which was worth more than £1 billion at its peak before a series of profit warnings, has urged investors to back the 2.9p-a-share bid from the American financial services giant.

Monitise said it would need to raise more money or offload businesses if the takeover falls through and said the alternatives to a takeover “are unlikely to yield superior value”.

It added: “With further investment still required in the business, were this transaction not to take place, the board will need to consider raising further capital, the divestment of businesses, and the overall strategy of the group.”

Paul Mumford, fund manager at Cavendish Asset Management, a smaller shareholder in Monitise, said last month that Fiserv’s offer was “far too low”, and added that Monitise’s new FINkit platform has “real potential”.

But the company today admitted it was struggling to secure its first contract for FINkit amid competition from larger players.