Icap agrees to buy Plus Exchange for £1 cash

Icap agrees to buy Plus Exchange for £1 cash

Intedealer broker Icap has agreed to acquire loss-making Plus Stock Exchange, the smaller company equity exchange, for £1 in cash.

Plus Markets confirmed Icap's interest in the business earlier this week just days after it had announced plans to wind down its operations after failing to find a suitable takeover partner.

The Plus Stock Exchange recorded losses of £5.7 million for the year ended December 2010, and half-yearly losses for the period 'til June 2011 of £1.02 million.

Icap's primary interest is in the acquisition of Plus' coveted Recognised Investment Exchange status, one of only five in the UK. It provides listing and quoting services to around 140 companies and generates revenue of approximately £3 million a year.

Icap says it will maintain quotation for the companies listed on the Exchange and will look to add additional services in the future, including listed derivatives.

The deal is subject to FSA and Plus Markets shareholder approval.

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