OzForex in Talks With U.K. Rival HiFX

MELBOURNE, Australia--OzForex Group Ltd. (OFX.AU) has set its sights on rival money transfer company HiFX Group PLC, mulling a deal that would expand its payments services operation in the U.K. and at home in Australia.

Discussions are ongoing with privately owned HiFX regarding the business and its proposed sale, the company said in a statement to the Australian stock exchange Monday. The talks, however, are incomplete and it remains uncertain whether they will result in a deal, it said.

Listed on the ASX and with a market capitalization of about 720 million Australian dollars (US$644.5 million), OzForex was launched in 1998 as a foreign-exchange information website and has expanded to provide international payments in Australia, the U.K. and Canada. It also has operations in the U.S. and Europe.

The talks are consistent with the company's strategy to evaluate growth opportunities, including potential acquisitions, OzForex said.

HiFX, which was founded in 1998, recorded a net profit of GBP5.8 million on sales of almost GBP9.2 billion in the fiscal year to June 30 and had net assets of GBP15.1 million at that date. With more than 200 employees, it holds licenses in the U.K. and in Australia and New Zealand, the company's website said.

Sky News late Friday reported that OzForex was one of several potential suitors considering offers for HiFX, among them various private-equity firms. Analysts expect the U.K. company could fetch well over GBP100 million, it said.

Windsor-based HiFX couldn't immediately be contacted outside of business hours.

Write to Robb M. Stewart at [e-mail]

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