Investors have piled into OzForex shares after global financial giant Western Union lobbed a premium takeover bid for the online foreign exchange company.
Western Union has made a preliminary and non-binding offer of between $3.50 and $3.70 a share, valuing OzForex up to $888 million.
OzForex's share price closed up 30 per cent, or 78 cents, at $3.38.
Bell Direct equities analyst Julia Lee says the cash bid was at a significant premium to OzForex's Wednesday close price.
"This is a 38 per cent premium on yesterday's close price and 32 times consensus for the current financial year," she said.
"And the question remains as to whether any other bidders will come out of the woodwork."
She said it was a strategic move by the US-based currency transfer company which is looking to expand.
"It is also potentially taking out a competitor when the Aussie dollar looks attractive," she added.
OzForex said in a statement there was no certainty that the indicative proposal will result in a binding offer, what the terms of any such offer would be, or whether there will be a recommendation by the board.
"Irrespective of whether the indicative proposal proceeds, the board believes that OzForex has a very attractive independent future and that it is well positioned to continue to deliver strong growth," the statement said.
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 had 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.
The company is in the throes of transforming its business into a 24-hour global money exchange service.
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