TP ICAP Confirms Acquisition Of Liquidnet - Quick Facts

TP ICAP (IAPLF.PK,IAPLY.PK,IAP.L) confirmed the Group has agreed definitive terms to acquire Liquidnet Holdings, Inc. for a total consideration of between $575 million and $700 million. This comprises non-contingent cash consideration of $525 million payable on completion and $50 million deferred consideration. TP ICAP expects the acquisition to be accretive to underlying earnings per share in year 3.

TP ICAP expects to finance the non-contingent base consideration through: a rights issue to raise proceeds of approximately $425 million; $100 million by drawing down from existing debt facilities; and $50 million to be paid on the third anniversary following completion by loan notes issued to certain stockholders in Liquidnet at completion.

TP ICAP said, if the deal is approved by its shareholders, the Board intends to recommend a one-off 50% reduction of the minimum 94 million pounds dividend in respect of the financial year ending 31 December 2020. For the financial year ending 31 December 2021 onwards, the Board intends to introduce a new dividend policy that will target a dividend cover of approximately 2x underlying earnings.

Liquidnet is a global electronic trading network that connects buyside clients to liquidity in the equity and fixed income markets through its electronic trading platform.

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