EHS Investments Opposes Helios Consortium Bid for CAB Payments Citing Substantial Undervaluation

EHS Investments, a shareholder in CAB Payments Holdings plc, has formally opposed a takeover bid from the Helios Consortium. The move highlights growing investor resistance to low-valuation buyouts in the UK fintech sector, particularly as firms like CAB Payments argue that current market volatility masks their underlying growth and long-term recovery potential.

What was announced

EHS Investments, which holds just under 1.0% of CAB Payments, issued a statement on October 29, 2026, rejecting the proposal from the Helios Consortium. The consortium consists of several entities, including:

• Helios Investors V, L.P.
• Helios Investors V (Mauritius), L.P.
• Helios Fairfax Partners Corporation
• Helios Investors III, L.P.
• Helios Investors III (A), L.P.

EHS argues that the current offer price effectively values the company at only five times its estimated 2028 adjusted earnings per share (EPS), excluding the company’s current excess capital position. Based on an analysis of medium-term targets, EHS believes CAB Payments can deliver an adjusted EPS of 15 pence or more by 2028. This would represent approximately 30% compounded annual growth from 2025 levels and restore the company's earnings power to the heights seen in 2022.

The shareholder also highlighted that CAB Payments is currently executing a strategic plan focused on scaling its network, diversifying revenue, and investing in technology. EHS estimates that under its current capital management framework, CAB could return over 25% of its current market capitalization to shareholders over the next three years. Furthermore, EHS pointed to a "significantly higher" 110 pence offer from StoneX Group Inc., noting that the Helios Consortium’s refusal to support that bid while promoting their own lower offer is a troubling approach that could undermine investor confidence in UK markets.

The companies involved

CAB Payments Holdings PLC is a specialist in business-to-business cross-border payments and foreign exchange, primarily serving developed markets that require access to complex currency corridors in emerging economies. Listed on the London Stock Exchange under the ticker CABP, the company has faced significant share price pressure since its 2023 initial public offering, despite maintaining growth in active clients and payment volumes. The firm operates as a major infrastructure provider in the global payments space, positioning itself as a bridge between traditional banking and emerging market liquidity.

The Helios Consortium is led by Helios Investment Partners, a private equity firm with a deep focus on African markets and emerging economies. Helios Fairfax Partners Corporation, a key member of the consortium, is a publicly traded investment holding company. EHS Investments, which is associated with ROC Capital Investments, acts as a minority shareholder in CAB. The mention of peers such as Corpay, Inc. and StoneX Group Inc. underscores the competitive landscape for specialized FX and payment providers, where valuation multiples often vary significantly between public and private markets.

What FF News has reported before

FF News has closely followed the acquisition interest surrounding CAB Payments throughout the year. In August 2026, the publication reported that CAB Payments Rejects Helios Consortium Offer as 'Highly Opportunistic' and Undervaluing Future Growth. At that time, the board’s rejection mirrored the sentiments now being expressed by EHS Investments, specifically regarding the timing of the bid. The company has consistently maintained that its underlying operational progress, including its network expansion and technology investment, has been masked by currency volatility, leading to a disconnect between its public share price and its intrinsic value.

What this means

This public pushback from EHS Investments signals a broader tension in the UK capital markets regarding the valuation of fintech firms. When public markets fail to reward growth due to temporary currency volatility or macroeconomic headwinds, it creates an opening for private equity to attempt acquisitions at significant discounts. The mention of StoneX’s higher 110 pence offer suggests that the market for cross-border payment providers remains highly competitive, putting pressure on the Helios Consortium to either raise its bid or face a protracted battle with shareholders. For the wider sector, it raises questions about whether the London Stock Exchange remains the best venue for high-growth fintechs if their valuations remain consistently depressed compared to private market interest and peer benchmarks.