Directors of ASX-listed bank Tyro Payments Limited have re-opened the door to Potentia Capital after their decision in December to reject an A$875 million buyout offer from the suitor. In a filing to the ASX on Monday Tyro revealed it has granted Potentia an opportunity to conduct due diligence on the company with a view to receiving a “significantly improved” offer for the business. “Tyro confirms that Potentia commenced non-exclusive due diligence on 10 February 2023,” the target company’s directors told the ASX. “As announced on 27 January 2023, the Tyro Board offered to provide Potentia with an opportunity to conduct due diligence for a four week period to enable Potentia to develop a significantly improved proposal and confirm the necessary funding commitments attached to any possible future offer.  “The Company notes that there is no certainty that a further non-binding indicative offer, a binding offer, or a transaction of any kind will eventuate.” Potentia is leading a consortium of investors pitching to acquire Tyro.  Other investors include MLC Investments, CBUS Super, Aware Super and HarbourVest Partners. Tyro scrip has traded erratically since the Potentia consortium lobbed its December offer which valued the business at $1.60 a share. The share price rallied above $1.70 last week ahead of Tyro’s confirmation that Potentia had entered a due diligence process. However, Tyro scrip closed down 5 cents or 3 per cent to $1.63 – an indication that stockmarket investors are circumspect about the prospect of a material improvement in the buyout offer. While Tyro has been a price leader in the Australian merchant acquiring market, it has struggled to translate its market share gains into profits. The company posted a full year net losses of $30 million last year and in 2021, despite generating significant top-line growth. Revenue soared $88 million or 37 per cent to $326 million in 2022 but these gains were mostly nullified by higher costs, including a $47 million surge in interchange and scheme fees. Tyro also recorded a $600,000 loss on its $34 million business lending book. The balance sheet at the end of June showed net assets of $159.6 million.