Former EmxCo chairman Paul Loach has made a bid of an undisclosed amount for the Autif sponsored com...
Former EmxCo chairman Paul Loach has made a bid of an undisclosed amount for the Autif sponsored common trading platform which is set for launch this June.
Loach has set up Investment Fund Utilities Limited, backed with capital from Garban Intercapital, with which to buy Emx and operate it as a private venture. Garban Intercapital is a global wholesale broking business covering the money, derivatives and securities markets and has net assets worth more than £162m.
He is proposing to make an immediate injection of capital of £3.5m into the project, £1m more than the sum Autif is trying to raise through a 75% increase in member subscriptions for 2000. Members are expected to vote on the subscription increase at a 4 February special meeting. If the resolution is voted down, then Autif is considering selling the project to an outside party.
Loach is also proposing to immediately pay off Emx's debt to Autif, which has funded the initial stages of the project. In addition Loach's proposals would look to retain all of the management staff currently in place at Emx and would offer Autif members shares in the company and seats on the board.
Alan Ainsworth, chairman of Autif, would not comment directly on the offer other than to say that EmxCo has received a formal offer to buy the company. Autif has also announced that Nicholas Durlacher will become the chairman of EmxCo if Autif members vote to approve the increase in member subscriptions.
For more on Emx charging structure see page 19
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