TP ICAP is about setting up another location for its holding group company in Jersey. The London Stock Exchange reported that the company still intends to keep its main stock exchange listing in the UK. But the new holding group will be incorporated in the US.
Reasons for the new incorporation
TP ICAP has given reasons for the company’s decision to set up a location in Jersey. It stated that the expansion of the company’s international activities had necessitated the desire to create more locations to meet the demand of the market.
It has reviewed the consistent rise in its international governance and corporate structure. And the growth in the size of the American and Asia Pacific market has made it essential to expand its market reach. The group is intensifying efforts to provide a more conducive environment for healthy competition, which will foster growth in every segment of the group.
In 2016, TP ICAP acquired the global hybrid broking business, which has allowed it to improve on its international and global business coverage. The Company will be setting up the office following the Companies Act of 2006 and overseen by the court-approved scheme. It intends to follow all the rules stipulated in the Companies Act.
How this will affect shareholders
The TP ICAP shareholders would still be able to hold and manage their shares. But they can exchange their TP ICAP ordinary shares in the Jersey location (New Topco) on a one-on-one basis.
The proposal stipulates that the location of the company’s main stock exchange listing will still be in its present location, London. But the group’s tax domicile will now be located in Jersey.
The New Topco shares will also be listed on the Exchange’s main section in London’s stock market. Its proposed new location and structure would be subject to the approval of regulatory bodies and the company’s shareholders. The listing would also be appropriate for FTSE index inclusion.
Henceforth, shares on the New Topco location would be traded on the stock exchange market in London. Those who already own shares can still keep their shares or trade it on the exchange on an individual basis, according to TP ICAP.
The TP ICAP board reiterates that this new development will be progressive for the company. They stated that it would lead to a corporate structure that offers better financial flexibility for all concerned members. It will also improve competitiveness and proper governance in the group. The new location would not affect the location of employees of the group, according to the TP ICAP board.
Proposal Circular and prospectus to be polished next year
With this announcement, the TP ICAP board expects to publish the circular and prospectus of the new arrangement in the second quarter of next year. The circular will summarize the details about the proposal after receiving the node from third party consents. TP ICAP would seek consent from court appeals, regulatory bodies, as well as from the shareholders. Once everything is set, the board anticipates that the proposal would be complete before H1 2020.