IFX Payments Weighs Withdrawal from Argentex Deal After Insolvency

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IFX Payments said on Monday it may pull out of its planned takeover of Argentex, just days after the British currency risk firm moved to appoint administrators following a funding crunch.

Argentex halted operations late last week after failing to secure new financing, prompting the company to begin an insolvency process. The move came less than three months after it suspended trading in April, triggering a near-total collapse in its share price.

The company reached a deal with IFX in June that valued Argentex at £3 million ($4 million), offering shareholders 2.49 pence a share. In May, IFX also extended a £20 million loan to keep the business afloat, but Argentex continued to struggle. The firm’s CFO, Guy Rudolph, and several board members resigned around the same time.

On Monday, IFX said the agreement included a clause allowing it to walk away if Argentex entered insolvency, and that it was now reviewing its position in consultation with regulators.

Earlier this year, the Financial Conduct Authority (FCA) suspended Argentex’s trading permissions, citing liquidity concerns. Sources close to the deal said IFX is consulting with the UK Takeover Panel on how to exercise its right to abandon the acquisition, with formal withdrawal still pending regulatory clearance.

The dramatic turn was a rapid descent for Argentex, once valued at over £120 million at its 2019 IPO. A sharp bout of market volatility earlier this year left the firm nursing heavy margin-call losses and struggling to raise fresh capital. The company’s shares already cratered ahead of the April rescue, when IFX stepped in with a short-term financing facility tied to the proposed acquisition.

The collapse and potential exit by IFX highlight the growing risks facing thinly capitalized FX and payments firms operating in volatile markets. Analysts say the episode may prompt tighter scrutiny of balance sheets and client exposure across the sector.

Argentex’s administrators are now tasked with salvaging value for creditors and navigating ongoing FCA oversight. IFX, meanwhile, may seek to recover parts of its emergency loan, though the prospects for full repayment remain unclear.