Plus sold for £1 in deal to keep parent alive

A JUNIOR stock exchange has been sold for £1 in a deal to ensure its survival.

London-based ICAP, the world’s largest inter-dealer broker, snapped up Plus for the nominal sum in a “cash-free, debt-free” deal that will split the stock exchange from its parent company.

On Monday Plus shocked the 156 businesses which use its services by saying that its attempts to sell itself had come to nothing and it would close down in an orderly manner over the next six months.

The firm had made a loss in each of the past six years and was thought to be struggling to meet new funding requirements set by the Financial Services Authority.

It is thought ICAP had been one of the parties that expressed interest in Plus when it offered itself for sale in February, but had pulled out due to the price.

The takeover was seen by analysts as a move by ICAP to pay a cut price for Plus’ exchange licence (RIE), a potentially attractive asset as global regulators look to force more of ICAP’s core over-the-counter derivatives markets to use exchanges.

The deal will have to be approved by shareholders of Plus Markets Group, which said the sale would allow it to continue trading.

It said: “Plus stock exchange remains a loss-making business. The disposal will, therefore, help both the group preserve remaining shareholder value and protect the reputation and continuity of the RIE for its existing listed