Tullett Prebon Confirms Acquisition of ICAP's Brokering Unit

LONDON—Interdealer broker Tullett Prebon PLC confirmed Wednesday it is buying ICAP PLC's global hybrid voice brokering and information business in return for shares representing 56% of the enlarged issued share capital.

The two companies announced last week that they were in talks and a person close to the situation told The Wall Street Journal the deal could be worth more than £ 1 billion ($1.5 billion).

Upon completion of the deal ICAP shareholders will hold 36.1% of the enlarged group, ICAP will hold 19.9% and existing Tullett Prebon shareholders will hold 44% of the enlarged share capital.

Tullett Prebon Chairman Rupert Robson said the acquisition would deliver attractive financial returns for shareholders.

Separately ICAP reported a 17% rise in its headline trading profit before tax and said it remains well positioned to benefit from any future improvement in trading conditions.

For the half year ended Sept. 30 ICAP made a trading profit, which strips exceptional and other one-off items, of £ 101 million, compared with £ 86 million a year earlier, on revenue of £ 595 million and £ 620 million respectively.

Profit before tax for the half year was £ 83 million, compared with £ 36 million for the first half of fiscal 2015.

The dividend has been maintained at 6.6 pence.

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(END) Dow Jones Newswires

November 11, 2015 03:55 ET (08:55 GMT)

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