Western Union will run the slide rule over the books of currency exchange outfit OzForex as it weighs up whether to proceed with a takeover offer.
Western Union last week made a preliminary and non-binding offer of between $3.50 and $3.70 a share, valuing OzForex at up to $888 million.
OzForex on Thursday said its board had evaluated the offer and decided to allow Western Union to carry out due diligence on an exclusive basis.
"The board of OzForex is not restricted from considering competing offers, where failure to do so would be reasonably likely to constitute a breach of fiduciary or statutory duties by the OzForex directors," OzForex said in a statement.
OzForex, which provides online international payment services, said the company and its advisers believe it is in the interest of shareholders to engage with Western Union exclusively during the due diligence period.
But the OzForex board said there was no certainty the proposal would result in a binding offer.
The company has agreed not to solicit, negotiate or enter into agreements with third parties in connection with any competing proposal while Western Union examines its books.
Earlier this month, OzForex reported a rise in underlying profit and a record turnover of $10 billion for the first half of its 2015/16 financial year.
It also re-affirmed its forecast of a rise in underlying full year earnings to $38.5-$40.5 million, up from $34.5 million in 2014/15.
Shares in OzForex were eight cents, or 2.25 per cent, lower at $3.47.
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