TP ICAP to Fund Liquidnet Acquisition Deal via Rights Issue

TP ICAP PLC (LON:TCAP) announced today a fully underwritten rights issue, which is intended to raise approximately £315 million to fund the acquisition of the Liquidnet Holdings, Inc (Liquidnet). About three months ago, TP ICAP agreed the definitive terms to buy the entire issued share capital of Liquidnet.

To raise the money, TP ICAP is expected to issue 225,334,552 new ordinary shares, which represent about 40% of the existing issued share capital of the company and 28.6% of the total issued share capital after completion of the Rights Issue. The Rights Issue will be based on 2 for 5 Rights Issue at 140.0 pence per New Ordinary Share.

TP ICAP plans to pay a total consideration of between US$575 million and US$700 million to buy the entire issued share capital of Liquidnet. The cash consideration of US$525 million will be paid on completion of the acquisition. The rest includes the non-contingent deferred consideration of US$50 million and the contingent consideration of up to US$125 million.

On 1 February 2021, TP ICAP will hold its general meeting, where the shareholders of the company will vote for the approval of the acquisition.