Good evening,

Tyro Payments was the deal of the day, as we predicted, although it turns out we got only half the story.

While Potentia Capital returned with a $1.60 a share offer, up 33c on its previous bid, Tyro Payments rejected the bid and said it ceased talks with all suitors including Potentia’s consortium, Westpac Banking Corp and anyone else that was sniffing around.

Interestingly, Tyro said it “remains open to engaging with any credible change of control proposal”, which was a kick in the guts for Potentia.

We had a read of its revised proposal on Monday, and it looked pretty credible as far as non-binding indicative offers go.

There were four big co-investors (including new name Aware Super), no financing condition, no mention of ACCC approval and a request for a quick round of confirmatory DD. Including a break for summer, Potentia said it could firm up its offer by January 31.

The letter is sure to be discussed at investors’ Tuesday morning meetings. There was already a bit of shock by Tyro’s dismissal – as shown in quotes from the likes of Wilson Asset Management and QVG Capital – and it may surprise investors to see exactly what the bid looked like.

Elsewhere, we’ve spotted another potential billionaire family office, this time at Scott Farquhar/Kim Jackson’s Skip Capital.

Skip is understood to be inching towards a deal to invest in burrito biz Zambrero, which has gone a few rounds of talks with PE investors and family offices and may finally have its deal.

Elsewhere, Allens gets the crystal ball out for private capital deals, and we have a new pre-IPO raising out of Kidder Williams.

Happy reading,

Anthony Macdonald, Sarah Thompson and Kanika Sood
Street Talk editors