MELBOURNE, Australia--OzForex Group Ltd. (OFX.AU) has set its
sights on rival money transfer company HiFX Group PLC, mulling a
deal that would expand its payments services operation in the U.K.
and at home in Australia.
Discussions are ongoing with privately owned HiFX regarding the
business and its proposed sale, the company said in a statement to
the Australian stock exchange Monday. The talks, however, are
incomplete and it remains uncertain whether they will result in a
deal, it said.
Listed on the ASX and with a market capitalization of about 720
million Australian dollars (US$644.5 million), OzForex was launched
in 1998 as a foreign-exchange information website and has expanded
to provide international payments in Australia, the U.K. and
Canada. It also has operations in the U.S. and Europe.
The talks are consistent with the company's strategy to evaluate
growth opportunities, including potential acquisitions, OzForex
said.
HiFX, which was founded in 1998, recorded a net profit of GBP5.8
million on sales of almost GBP9.2 billion in the fiscal year to
June 30 and had net assets of GBP15.1 million at that date. With
more than 200 employees, it holds licenses in the U.K. and in
Australia and New Zealand, the company's website said.
Sky News late Friday reported that OzForex was one of several
potential suitors considering offers for HiFX, among them various
private-equity firms. Analysts expect the U.K. company could fetch
well over GBP100 million, it said.
Windsor-based HiFX couldn't immediately be contacted outside of
business hours.
Write to Robb M. Stewart at robb.stewart@wsj.com
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