LONDON, Sept 24 (Reuters) - Britain's biggest spread-betting firm IG Group
said on Wednesday it had agreed to buy 87.5 percent of Japanese online foreign
exchange trading firm FXOnline Japan KK for 112.2 million pounds ($207.7
million).
Part of the deal would be financed by placing almost 33 million new
ordinary shares to raise 82.2 million pounds with the balance coming from
existing cash reserves, IG said in a statement.
IG also said recent bans on short selling shares in some banks were
expected to have a "negligible" impact on group revenues and that its trading
and outlook had not changed since issuing a trading statement on Sept. 9.
"While it remains difficult to predict future trends in volatility or
client reaction to any changes in market conditions, the directors of IG believe
that the group remains well positioned for further growth and are confident of
the group's prospects," the company said.
IG said the acquisition of FXOnline fitted with its strategy of extending
its geographic reach, and was likely to result in "significant" cost savings and
enhance its earnings per share in the current financial year.
"There is a good cultural fit between the two businesses and the
potential for immediate synergies," IG Chief Executive Tim Howkins said. "The
acquisition of FXOnline and our entry into the Japanese FX market represent an
important milestone in our strategic plans."
IG said Lexicon Partners had advised on the acquisition while UBS was
acting for it in relation to the share placing.
(Editing by Sue Thomas) ($1=.5401 Pound) Keywords: IG/JAPAN
tf.TFN-Europe_newsdesk@thomson.com
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