TP ICAP Shareholders Greenlight Liquidnet AcquisitionFebruary 1, 2021
Interdealer broker TP ICAP plc (LON:TCAP) announced that the shareholders of the publically-listed company have approved the proposed acquisition of private trading operator Liquidnet and its subsidiaries.
The London Stock Exchange (LSE) filing detailed that 83.33 percent of the shareholders voted in favor of the deal in the company’s annual general meeting held on Monday morning. 16.66 percent of votes were against the deal, while a minority also refrained from voting.
TP ICAP first publicly revealed its interest in the US-based dark pool operator last September, and, a week after the confirmation, both the companies signed the agreement of definitive terms for the acquisition. TP ICAP is willing to seal the deal anywhere between $575 million and $700 million.
The London-listed company is even in the process of raising approximately £315 million via rights issues to fund the deal. The remaining $100 million will be sourced from the existing debt facilities, and a further $50 million will be paid after the third year of the deal.
A Major Deal to Dominate the Buy-Side Market
Liquidnet has a major global buy-side network of over 1,000 institutional asset management clients and also integrates with all major order/execution management systems. The platform collectively manages $33 trillion in equity and fixed-income assets and has access to 45 global markets.
After the green light from the shareholder, only regulatory approval is pending for the final closure of the acquisition deal.
TP ICAP earlier detailed that the acquisition will provide the potential new owner substantial electronic trading and workflow connectivity to the buy-side and, additionally, can diversify its asset exposure.
Meanwhile, the interdealer broker has recently restructured its operations forming a holding company based in Jersey. Additionally, it established a local entity in France as post-Brexit, it cannot continue its EEA operations from London.
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