Sept 26 (Reuters) – Brazil’s Nubank is in early-stage talks with British digital bank Monzo about a potential combination that could value Monzo at between £8 billion and £10 billion ($10.60 billion – $13.25 billion), Sky News reported on Saturday.
• An acquisition by Nubank is one of two options Monzo’s board is currently exploring, Sky News said, citing a source close to the process.
• The other option is a new funding round expected to value Monzo at more than £8 billion, with proceeds earmarked for a mainland European expansion, the report said.
• Monzo declined to comment. Nubank could not be immediately reached for comment outside regular business hours.
• Nubank, headquartered in Sao Paulo, is listed on the New York Stock Exchange with a market capitalisation of about $65.5 billion.
• London-based Monzo made a pretax profit of £87.3 million for the year ended March 31, up from £60.5 million a year earlier, with revenue growing to £1.7 billion from £1.2 billion, according to its annual report.
• Last October, Monzo was valued at £4.5 billion in an employee share sale to investors including Singapore’s sovereign wealth fund GIC and StepStone Group.
($1 = 0.7547 pounds)
(Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Kirsten Donovan )
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