OzForex has opened the door to Western Union's $800 million takeover

Vittorio Zunino Celotto/Getty Images

OzForex has opened its books to Western Union so it can decide whether or not to go ahead with a takeover offer which values the online foreign exchange company at up to $888 million.

The directors of Ozforex have decided to allow Western Union, the giant US American financial services and communications company, exclusive due diligence.

However, they say there is nothing stopping OzForex considering competing offers.

OzForex shares are down 1.4% today to $3.50 but still way above the six month low of $2.

Western Union’s cash offer is between $3.50 to $3.70 per share.

The offer comes as OzForex is about to change its name, dropping the distinctively Australian flavour, to become a more intentionally recognisable company. Next month the company rebrands as OFX.

In the latest half year results, OzForex posted a 12% rise in underlying net profit to $12.309 million. Statutory profit was down 6% to $11.223 million because of a series of one-off costs including a proposed acquisition which stalled.

Turnover is up by about one-third to $10 billion over the latest half year.

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