London Capital Hldgs Share Discussion Threads

[canteatvalue] 26/2/2013 10:49

Masurenguy - basically summarises a lot of what we already know: Smaller spread betting firms hurt by low volatility, the chairman of LCG saying they need to adjust the cost base to the 'new normal'. Argues that smaller players need to consolidate in order to benefit from scale and to compete effectively on technology/marketing with IG. Quotes a few big players saying they are looking at the acquisition route for expansion - e.g.

'Martin Belsham, chief executive of rival operator City Index, says he is "looking at the acquisition route", in addition to seeking organic growth.'

[purple11] 26/2/2013 09:49

so whats the cantor and city holdings all about.?havent a clue why would they bother mucking about with 10 and 20k longs/shorts..are they trying to keep the price in a range?

I hope this isn't just some shabby bit of pr to try and get the shareprice up.

[masurenguy] 26/2/2013 07:23

CEV - not an FT subscriber - can you please summarise the gist of the report ?

[purple11] 26/2/2013 07:04

with the trouble The Pimp is causing in Italy no doubt trading will improve.

[canteatvalue] 26/2/2013 00:49

I will film myself eating a hat and stick it on YouTube if Betfair make a bid here. Breon Corcoran has enough on his plate already drastically re-structuring the core business (which has far more earnings power than LCG, even under my most bullish scenarios for LCG and my most bearish for BET!) and the core thesis for an acquisition here has to be based on consolidation and trying to mount a real challenge to IGG. Why would Betfair, who have no spread-betting business to create synergies with, want to get involved?

Also, for those who didn't spot it in the FT:

[g8ta] 25/2/2013 22:32

Nothing from Betfair. Whether they are waiting for first offers to be tabled, or just not interested.

[badtime] 25/2/2013 16:38

Well this afternoons selling was absorbed ..lets see if the price remains stable for next couple of days

[masurenguy] 25/2/2013 07:56

RNS Number : 5350Y
London Capital Group Holdings PLC
25 February 2013

Board Changes
As disclosed in the Company's financial results on 20 February 2013 the Board is pleased to announce
that Mark Slade, (51), has today taken up the role of CEO. His appointment is subject to the normal FSA approval process. Mark has extensive knowledge of trading in financial markets and risk management, gained in a 30 year career most recently as CEO of Marex Financial and previously as Managing Director
of Refco Overseas. He also served as a Director on the London Metal Exchange for 7 years.

Commenting on the Board changes, Giles Vardey, Chairman, said "I am delighted that Mark Slade has decided to join us as the Company's new CEO. We all agree it is the right time for fresh leadership and
he has a long and enviable track record in growing financial businesses. The Board is confident that he
is the right person to take the Company forward."

[purple11] 23/2/2013 14:13

I think I may partake in another nibble Monday morning.gla

[masurenguy] 23/2/2013 13:06

Thanks - I note that they are speculating that City Index may be freeing up the cash from the planned sale of their US interests in order to acquire LCG. They note that CEO Martin Belsham has previously stated that he wanted to be a consolidator within the spread betting industry and this could explain their approach to LCG, which was announced last week. Whoever acquires LCG would immediately establish themselves in the number 2 spot beneath market leader IG Index within the UK.

They speculate that an acquisition price could be in the range of 65p - 80p (£34.5m - £42.5m) which after deduction of net cash would actually only represent a cost of £14.5m - £22.5m for the actual business.

[masurenguy] 23/2/2013 11:48

Well $30m = £20m. That could fund a 75p share deal, valuing LCG at £40m including £20m in cash.

[masurenguy] 22/2/2013 13:37

Current major LCG shareholdings as at 21 Feb 2013.

Institutions
L & G: 19.60%
Artemis: 9.40%
Hargreaves Hale: 8.24% (increased by 44% from 5.7% at the end of January)
Axa Framlington: 4.80%
Slater Investments: 3.15%
Unvi Superannuations: 3.0%
Church House: 3.0%
Amati: 1.90%
Premier Fund Managers: 1.69%

9 Declared Institutional Holders = 54.78%

3 Directors (Denham, Woodford & Cameron) = 30.1%

Top 12 shareholders = 84.88%

All other shareholders: 15.12%

[masurenguy] 22/2/2013 11:53

The shareprice has drifted down by 3p (from 48p to 45p) since yesterday mornings market open on a volume of less than 200,000 (0.4%). There is no sign, so far, of any institutional holder bailing out here.

[masurenguy] 22/2/2013 01:29

Possibly - checkout Wednesdays posts #430 - 436.

[trident5] 21/2/2013 19:03

Am I the only one who finds the CEO's departure at this critical time utterly inexplicable?

[masurenguy] 21/2/2013 17:29

I agree with the sentiments expressed above by purple11. GAIN was the smallest of the three predators
by a long way and probably the least likely to have been in a strong position to consumate a deal.

City Index, part of the privately owned IPGL who are primarily a global buy & build investment management company, have previously acquired IFX Markets, Finspreads and FX Solutions over the past 6 years and have both the finances and experience to fund and integrate a synergetic business like LCG.

Cantor Fitzgerald, one of the last major privately owned Wall St investment and financial services companies, recently expanded their presence in the UK by acquiring Seymour Pierce, and LCG would
provide plenty of synergy within their Cantor Enterntainment Technologies digital gaming operation.

GAIN are just not in the same league as these two !

[purple11] 21/2/2013 17:08

City index and Cantor are the most likely to bid-so perhaps theyre battling it out and Gain have walked away to let them get on with it.interesting.gl

[wilsonst1] 21/2/2013 16:49

GAIN. No intention in making an offer. Looks like we are down to two.

[masurenguy] 21/2/2013 14:47

The three named predators have a further two and a half weeks - deadline is Tuesday March 12th - to announce whether they are intending to make a firm offer or are not going to pursue any further interest
in acquiring LCG. Therefore one should not expect any further news until any, or all, of these predators have reached the position to make their further intentions known.

[badtime] 21/2/2013 13:50

The inevitable drift on no news

[t1tch] 20/2/2013 20:14

https://www.google.co.uk/search?q=in-line-results-from-london-capital-group-ceo-steps-down&ie=UTF-8&oe=UTF-8&hl=en&client=safari

Try this

[g8ta] 20/2/2013 12:39

Masurenguy - For some reason the link has been altered. It should be www.-., instead it is www.-. Anyway, the article is in the blog section of SpreadBet Magazine.


Edit- They've done it again. wtf?!

[masurenguy] 20/2/2013 11:57

g8ta/SBMuser - the link that you have both posted does not work.