LeapRate Exclusive… Well it is not over just yet for Alpari UK…
LeapRate has learned that leading Cyprus-based global broker IronFX has approached Alpari UK, and is in discussions to acquire some or all of the assets of the insolvent company. This comes after several other potential suitors failed in their approach over the weekend to also acquire Alpari UK.
Although Alpari UK formally entered administration on January 19 after weekend talks failed to find a buyer for the company or to inject the capital necessary to keep it onside of regulatory capital requirements, it appears that people close to Alpari UK are determined to still strike a deal on the assets of the company subject to consent from the Administrators KPMG.
In its statement on entering administration, which is still up on its website at the time of writing, Alpari UK itself states that: ‘We have had a number of enquiries from interested parties in relation to the company’s business. We will be speaking with these parties and others over the next few days, and hope to secure a deal to preserve the business and jobs as far as possible.”
LeapRate has learned that the leading (and possibly only) candidate having serious discussions with Alpari UK and the administrator is IronFX. The potential deal makes a lot of sense to us, with IronFX being one of the largest FCA-regulated brokers, and having the deep pockets necessary to convince Alpari UK’s clients to stay on board, as well as satisfy regulators that the clients transferred will be in good hands.
We understand that IronFX would be interested in most, but possibly not all, of the assets of Alpari UK, which is something which would have to be worked out in negotiations. Strategically, IronFX is strong in the Far East but not in Japan, while Alpari UK’s subsidiary Alpari Japan could provide an immediate boost for IronFX in that large market. (Or not, if IronFX decided against including Alpari Japan in the sale). We earlier were the first to report that Japan’s FSA placed Alpari Japan into administration as well, to protect its clients and assets from them being moved to the insolvent parent entity Alpari UK. Also, we understand that Alpari UK owns the DGCX-licensed Alpari Dubai which would fit nicely in IronFX’s MENA plans given the launch of its DFSA-authorized office in Dubai earlier this week.
There is also the touchy subject of existing litigation against Alpari UK, brought up today by the majority owner of the company, a subject which arises in almost any insolvency and which may be an obstacle to the majority of the interested parties. A buyer of Alpari UK and/or some or all of its assets would likely need to be able to structure a deal where they can receive those assets cleanly with the existing litigation lifted. It is our understanding from our sources that this obstacle is potentially excluding all other bidders from completing such an acquisition and strengthens IronFX’s position in completing the transaction.