Could Nuvei go private?

Rumours of a takeover are fueling returns for Nuvei (Nuvei Stock Quote, Chart, News, Analysts, Financials TSX:NVEI) shareholders of late.

Yesterday, Globe and Mail reporter Sean Silcoff wrote that the company “is engaged with discussions with certain third parties in connection with a potential transaction involving continued significant ownership by certain of the holders of multiple voting shares.”

That follows on a report from Saturday from the Wall Street Journal reported that Boston-based private-equity firm Advent International was in talks with the Canadian provider of payment technology solutions.

Then today, March 20, WSJ report Adriano Marches reported that CIBC analyst Todd Coupland said a deal could very well happen.

“The market still undervalues Nuvei compared with its peers and this may be a reason why the company is considering going private, CIBC’s Todd Coupland says,” he reported. “The analyst says in a report that a deal, which could be announced soon, wouldn’t come as a surprise. He notes that in the past two years Chair and CEO Philip Fayer has discussed the possibility of being bought out saying, “Nuvei would consider going private in the event its valuation remains at these depressed levels.” Coupland rates the stock as an outperformer with a price target of $34 per share. The shares a slightly lower in Tuesday morning trading, and are down 33% in the last 52 weeks.”

At press time, NVEI shares of the TSX were down 0.8% to $38.24.