19th Jul 2018 12:29
LONDON (Alliance News) - MXC Capital Ltd said Thursday that it has agreed to sell 25% stake in subsidiary MXC Capital (UK) Ltd to investment services group Ravenscroft Holdings Ltd for GBP2.3 million in cash.
MXC Capital (UK) holds the group's transactional businesses, including MXC Advisory Ltd and MXC Capital Markets LLP. The acquisition is conditional on the UK Financial Conduct Authority's approval for the change of control to MXC Capital Markets.
The company said GBP1.5 million of the sale consideration will be paid on the completion, and GBP750,000 will be paid on January 2, 2019.
Proceeds will go towards funding an Employee Benefit Trust, which will buy MXC shares to be held to satisfy future share incentive awards for employees and directors as well as investment into technology companies.
"We are delighted that Ravenscroft has decided to take a significant stake in our transactional businesses, demonstrating their belief and confidence in the MXC model. It is testament to the excellent relationship we have built with Ravenscroft as a result of working together on the GIF and we look forward to building on that relationship to create further value for both MXC and Ravenscroft's shareholders," said Chairman Peter Rigg.
Shares in MXC Capital were down 1.7% at 1.22 pence on Thursday.
Related Shares:
MXCP.L