26th Sep 2018 12:35
LONDON (Alliance News) - NEX Group PLC, the operator of NEX Exchange in London, on Wednesday said that it has agreed commercial terms with several investors to invest an undisclosed amount of new funds into the stock exchange.
The new funds will be retained by NEX Exchange, where they will be used to develop and grow the business, the company said, adding that it will retain a significant minority shareholding in NEX Exchange.
According to press reports, investors are injecting GBP10.5 million cash into NEX Exchange, which is reported to be valued at GBP20 million.
On completion of the fund infusion into the exchange, Patrick Birley will step down as chief executive officer and Oliver Hemsley, the founder and former CEO of Numis Securities, will be appointed as chief executive of NEX Exchange. The transaction is is expected close in the second half of the 2019 financial year.
NEX Exchange was bought in 2012 by interdealer broker ICAP. NEX Group - formerly known as ICAP - and Tullett Prebon in June 2016 agreed for Tulett to acquire the ICAP voice broking and information business. The deal was completed at the end of December 2016.
The parent NEX Group is currently in the process of being acquired by US exchange operator CME Group Inc for GBP4 billion.
Shares in NEX Group were up 0.3% at 1,037.00 pence each on Wednesday.