LCG completes going-private deal after receiving FCA approval


LCG trading floor

London based Retail FX, CFDs and Spreadbetting broker London Capital Group (or LCG) has announced that it has received FCA approval for the transaction which will see the operations of the brokerage transferred to a private company controlled by Charles-Henri Sabet, called SLCG International DMCC.

The publicly traded company now retains 8.5% of the issued share capital of LCGL (the brokerage), which SLCG International DMCC has the option to purchase.

The publicly traded company (on the NEX Exchange) is now classified as an investment vehicle for the purposes of the NEX Rules and will seek acquisitions and investments in the financial technology sector.

The transaction saw LCG issue Loan Notes to the publicly traded company in the amount of £4.6 million, carrying a fixed interest coupon of 8%, in return for 91.5% of LCG’s capital. The Loan Notes are perpetual, and the capital is not expected to be repaid, such that the ‘consideration’ that Holdings will receive is a steady interest stream of approximately £370,000 per annum. Sabet’s SLCG International DMCC will have an option to acquire the remaining 8.5% of LCG for £430,676, as noted above, to be satisfied by the issue of further Loan Notes.

Shareholders approved the LCG going-private transaction in March.

The full announcement put out LCG on the matter this morning follows.


London Capital Group Holdings PLC Completion of Disposal

London Capital Group Holdings PLC

31 July 2018

LONDON CAPITAL GROUP HOLDINGS PLC

(“LCG” or the “Company”)

Completion of Disposal

Further to the approval by shareholders on 21 March 2018, the Company has been granted approval of the change of control of LCGL by the Financial Conduct Authority (“FCA”). All of the conditions precedent for the disposal of 91.5% of the issued share capital of LCGL (the “Disposal”) have now been met and therefore the Disposal of LCGL is now complete. The Company retains 8.5% of the issued share capital of LCGL which SLCG International DMCC has the option to purchase pursuant to the terms of the Call Option Agreement entered into today.

The Company is now classified as an investment vehicle for the purposes of the NEX Rules and will seek acquisitions and investments in the financial technology sector.

This announcement should be read in conjunction with, the announcement released by the Company on 21 March 2018 and the Document to Shareholders dated 2 March 2018, both of which are available on the Company’s website: https://ir.lcg.com/

Unless the context otherwise requires defined terms used in this announcement have the same meaning as set out in the Document dated 2 March 2018.

The Directors of the Company accept responsibility for the contents of this announcement.

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LCG completes going-private deal after receiving FCA approval

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