PLUS Markets dives on licence revocation threat

Shares in PLUS Markets Group, the owner of the eponymous junior stock market, plunged on the firm's announcement that its exchange licence would be revoked by the Financial Services Authority (FSA) in the event of a rejection by shareholders of the proposed takeover bid by broker ICAP.

A deal must be completed by June 22nd, otherwise steps will be taken to revoke the recognised investment exchange licence. If such a revocation takes place, the company believes it would take effect from October 31st this year; in other words the intended date of closure of the PLUS-SX markets.

On Wednesday the troubled company recommended its shareholders to vote in favour of the proposed disposal of its PLUS-SX division to ICAP for a nominal sum at its general meeting on June 29th.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Dissident shareholders are reportedly tabling a resolution to remove Malcolm Basing, Chairman of PLUS, and Cyril Thret, the company's Chief Executive Officer, at the company's general meeting scheduled for June 29th.

The shareholders are irked at three things: the decision to sell the Plus market to ICAP for a nominal fee of £1; the £423,000 in "settlement costs" to be trousered by Thret and finance director Nemone Wynn-Evans if the deal goes through; and the £960,000 in fees being paid out to the company's bid advisors.

The share price fell 16.67% to 0.25p by 14:07.

NR