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Proposes deal at 400p per share
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CVC-Francisco Partners consortium has bid 387p
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Shares rise 11% to 400p
(Adds shares, analyst comments, background)
By Yadarisa Shabong
April 21 (Reuters) - Canada's Brookfield Asset Management has made a counter bid of 2.13 billion pounds ($2.65 billion) to takeover payments provider Network International, topping a joint proposal from CVC Capital and Francisco Partners.
United Arab Emirates-based Network International said it was evaluating Brookfield's proposal, in what could be the start of a bidding war for the largest payment processing firm across the Middle East and Africa.
Brookfield offered 400 pence per share versus 387 pence in the joint proposal from private equity firms CVC Capital and Francisco Partners which was disclosed on Monday.
Shares in London-listed Network International rose more than 11% to 400.2 pence by 0708 GMT.
Analysts believe the company is set to benefit from changes in payments and financial services infrastructure in the Middle East and Africa.
Brookfield last year bought a 60% stake in Magnati, the payments business of First Abu Dhabi Bank, in a deal that valued the business at up to $1.15 billion.
With Magnati being the No.2 payment processor in the UAE, that strengthens the likelihood of a deal, Credit Suisse analyst Justin Forsythe wrote in a note.
Network International, whose top investors include Capital Research and Mastercard UK, listed in London in April 2019 at an initial public offering price of 435 pence a share.
Brokerage Jefferies said earlier this week that several Network shareholders had suggested an offer above 400 pence per share would be acceptable.
Network International provides payment gateways for online merchants. Its website showed it recorded more than $42 billion in processed volumes for more than 150,000 merchants in 2021.
It had said on Monday that it was considering recommending the proposal by the consortium if a firm offer was made.
CVC Capital and Francisco Partners have until May 11, while Brookfield has until May 19, to either make a firm offer for the company or walk away.
($1 = 0.8046 pounds) (Reporting by Yadarisa Shabong in Bengaluru; editing by Savio D'Souza and Jason Neely)
