Argentex Group PLC (AIM:AGFX) said it is in "advanced discussions" with IFX Payments regarding a possible takeover, as the group seeks urgent liquidity support following a rapid deterioration in its financial position following the plunge in the dollar sparked by Donald Trump's tariffs announcement.
The company confirmed it had received three non-binding indicative proposals, but the board rejected approaches from Pollen Street PLC's (LSE:POLN) Lumon Acquisitions vehicle.
IFX Payments, the trading name of IFX UK, which is ultimately owned and controlled by Irish entrepreneur Terry Clune, remains the only party in active discussions over a full acquisition.
Argentex’s liquidity has been strained by heightened FX market volatility linked to the rapid devaluation of the US dollar following recent policy announcements from Donald Trump regarding tariffs and government spending cuts.
The resulting market moves have triggered significant margin calls on the company’s FX forward and options books.
On Tuesday, trading in Argentex’s ordinary shares was suspended at the company’s request, due to the material uncertainty over its financial position.
Argentex is now seeking to finalise terms for an emergency bridging loan from IFX Payments to provide working capital support.
The board noted that if this loan is not agreed, it would take immediate steps to preserve value for creditors and stakeholders.