UK spreadbetting company London Capital Group (LON:LCG) has issued a press release (see below) denying rumors that it has been in acquisition discussions, other than with a group led by Charles Henri-Sabet. As we wrote earlier, Sabet and his group have offered LCG a £17.5 million lifeline in return for effectively taking control of LCG.
A shareholder vote on the Sabet group proposal is scheduled for tomorrow, July 3.
LCG was in takeover talks with a number of parties about a year ago, in early 2013. At the time, LCG confirmed that it had received approaches from several firms including US-based Cantor Fitzgerald and Gain Capital (Forex.com), as well as LCG’s UK competitor, City Index. But eventually those talks did not lead to a deal.
The LCG press release follows:
London Capital Group Holdings PLC (“LCG” or the “Company”)
Comment re press speculation
The board of LCG has noted comments in the press relating to approaches the Company may have received from third parties. In its circular to shareholders dated 17 June, 2014 (the “Circular”) outlining a proposed financing of up to £17.5 million and requisitioning a general meeting for 3 July, 2014 the Company stated “From time to time the Company is in discussions with third parties (including competitors) with regard to possible mergers and acquisitions transactions. The Company, as at the date of this document, has no current intention to pursue any such mergers or acquisitions or similar transactions (other than as disclosed in this document). Should the position change, an appropriate announcement will be made.” The board of LCG confirms that this remains the position. It continues to recommend the financing as described in the Circular.