Big cards, personal loans player takes a look at Zip Co

Payments company Zip Co’s shareholders have more than doubled their money this year, but the strong run may have crippled their chance of a buyout.

Street Talk understands local credit cards and personal loans company Latitude Financial Services – which is owned by global heavyweights KKR, Varde Partners and Deutsche Bank – has been watching the ASX-listed payments provider.

Sources said Latitude’s new management team, spearheaded by former Australia Post boss and investment banker Ahmed Fahour, has spent some time considering ways to get into the buy now pay later sector, which looks like disrupting part of its more traditional banking book.

And as small cap managers know – and plenty rue – there are two main ways to play the thematic in Australia; Afterpay Touch Group or Zip.

Zip’s the one that was, until recently, left behind by strong market expectations. Its shares traded around the $1 mark for most of last year, while Afterpay’s rocketed.

And so it is understood Latitude’s new team ran some early stage diligence on Zip. It was said to be a preliminary look – and there was no approach or engagement between the two parties, either formal or informal.

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Source: Big cards, personal loans player takes a look at Zip Co