London Capital Group Shareholders Pass Sabet-Led Financing
(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - London Capital Group Holdings PLC Thursday said that shareholders have approved a GBP17.5 million financing plan arranged last month with GLIO Holdings, led by Charles-Henri Sabet, effectively putting an end to acquisition interest from spreadbetting and fixed-odds company Spreadex.com Ltd.
The passing of the resolutions comes just a day after Spreadex.com revealed that it had shown interest in making a takeover offer for London Capital Group at the end of June, but had its proposal, which envisaged an all-cash offer at a price of 30 pence per share, rejected.
Spreadex.com had said that any firm offer would be subject to a number of pre-conditions, including due diligence and the financing arrangements with Sabet not proceeding. It also said that London Capital Group's directors would have to unanimously recommend such an offer.
"We look forward to the active involvement of Charles-Henri Sabet and deploying these substantial resources to build out the company's capabilities and product offerings," Chairman Giles Vardey said in a statement. "We now have the opportunity to ?strengthen our brand, develop a broader product and services offering, and attract a more diversified client base, both within the UK market and internationally," Vardey added.
Under the financing plan, GLIO Holdings will subscribe to convertible loan notes of between GBP12.5 million to GBP15.0 million, and up to up to 75 million warrants. London Capital Group also offered convertible loan notes worth a total of between GBP500,000 and GBP2.5 million, and up to 12.5 million warrants, to institutional investors.
Following the financing, Sabet will have a substantial potential shareholding in London Capital Group and is expected to be appointed executive chairman.
London Capital Group shares were Thursday quoted at 25.20 pence, down 3.1%.
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