The ASX-listed scrip of struggling alternative payments provider, EML Payments, rallied on Wednesday after the company confirmed a media report that it had been approached to sell the business.

In response to a report in the AFR, EML told the ASX that it had held strategic talks with Bain Capital earlier this year but that the discussions had since been terminated.

“EML confirms that earlier in the year it was in discussions with Bain Capital regarding a potential change of control proposal,” the company said in a filing.

“Those discussions have now ceased. 

“The Board of EML will always consider proposals presented to the company and is fully committed to acting in the best interests of, and maximising value for, EML shareholders.”

The disclosure triggered a rally in the share price to above A$3, before it closed up 10.5 per cent at $2.94.

EML’s share price is trading more than 45 per cent lower than a year ago as a result of its compliance-challenged Irish subsidiary undermining the financial performance of the group.

The group posted a net loss of $12 million in the December half and its ability to make a return to profit is now being constrained by a decision of the Central Bank of Ireland to impose “material growth restrictions” on the troubled Irish arm.

EML is also facing a class action mounted by Shine Lawyers over alleged shortcomings in its disclosure of the company’s affairs.

According to Wednesday’s ASX filing, EML took advice from Goldman Sachs and Herbert Smith Freehills in relation to the approach from Bain Capital.