27th Mar 2014 14:03
LONDON (Alliance News) - Octagonal PLC Thursday said it has agreed to acquire a 9.97% stake in London-headquartered stockbroker Global Investment Strategy UK Ltd in a GBP800,000 cash deal.
GIS offers stock and bond clearing services as well as safe custody services. It is a member of the London Stock Exchange.
Octagonal is buying the shares from GIS Chairman and Chief Executive John Gunn, who is a major shareholder in the stockbroker.
Octagonal will pay GBP100,000 up front, with the remaining GBP700,000 to follow when the sale and purchase agreement and shareholder's agreement are signed and completed.
The shareholder's agreement is expected to regulate the relationship between the company and any other shareholders of GIS.
"The company sees tremendous growth opportunities for GIS as they continue to add new global clients in need of their bespoke online trading platforms and clearing systems. We see a potential income stream from regular dividends from this investment going forward," Donald Strang, chairman, said in a statement.
"Octagonal will continue to seek new investments as per its stated investment strategy that the board believes would add value to the Company in the future," Strang added.
Octagonal shares were Thursday quoted at 0.350 pence, down 4.1%.
By Samuel Agini; [email protected]; @samuelagini
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