2nd Jul 2014 14:28
LONDON (Alliance News) - Spreadex.com Ltd Wednesday said it showed a "non-binding indication of interest" in a cash takeover offer to London Capital Group Holdings PLC at the the end of June, but said its approach was rejected and that no discussions are currently taking place.
"Spreadex is considering its options. However, there can be no certainty that any firm offer will be made," the company said in a statement. Spreadex's proposal envisaged an all-cash offer at a price of 30 pence per LCG share, representing a substantial premium of approximately 46% to LCG's closing share price of 20.5 pence on June 27 2014," Spreadex said in a statement.
London Capital Group shares were Thursday quoted at 29.00 pence, up 36.5%.
In addition, the spreadbetting and fixed odds company said that any firm offer would be subject to a number of pre-conditions, including due diligence and for a GBP17.5 million financing arranged by London Capital Group in mid-June to be called off. It also said that London Capital Group's directors would have to unanimously recommend an offer.
Under takeover rules, Spreadex now has until July 30 to say whether or not it intends to make an offer. It added that it reserves the right to make an offer at any time for less than 30 pence a share.
Earlier Wednesday, London Capital Group had said that it has no intention to pursue any mergers or acquisitions and remains supportive of the GBP17.5 million financing package agreed with Charles-Henri Sabet-led GLIO Holdings Ltd.
Shareholders are set to vote on the financing proposals Thursday.
By Samuel Agini; [email protected]; @samuelagini
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London Capital Group Holdings