Tullett Prebon PLC Acquisition of MOAB Oil, Inc. (2269U)
28 July 2015 - 4:00PM
UK Regulatory
TIDMTLPR
RNS Number : 2269U
Tullett Prebon PLC
28 July 2015
28 July 2015
Tullett Prebon plc
Acquisition of MOAB Oil, Inc.
Tullett Prebon plc (the "Company") today announces that it has
acquired MOAB Oil, Inc. ("MOAB") a leading independent broker of
physical and financial instruments in the energy markets.
MOAB's expertise includes physical gasoline, gasoline blending
components, oil product swaps, ethanol, ethanol derivatives,
natural gas financial derivatives, crude oil, distillates, weather
and power products.
MOAB has long-established relationships with major oil
companies, gasoline blenders, oil trading divisions of investment
banks and smaller domestic trading firms. Utilising proprietary
models and the latest technology it provides its clients with
insights on trends, evolving regulations and trading economics
which affect their markets.
MOAB was incorporated in 2003. The business has 23 brokers and
is based in Norwalk, Connecticut. MOAB generated revenue of $23.7m
(GBP14.4m) in 2014. The three senior principals, who intend to
remain with the Company following the acquisition, will further
build out the energy business, using the scale and depth of the
Tullett Prebon platform to reach clients with a broader range of
products and services. MOAB intends to add complementary desks and
broking products and to expand the footprint of the business
internationally.
The acquisition is being funded from the Company's existing cash
resources and comprises an initial cash consideration of US$12.3m
(GBP7.8m), plus an amount equal to the working capital in the
business, including cash. Further deferred contingent consideration
is payable from the first anniversary of completion through to the
fifth anniversary. The amount of deferred contingent consideration
is dependent upon the performance of the business over the five
year period and has an initial fair value estimated to be US$14.3m
(GBP9.1m).
John Phizackerley, CEO of Tullett Prebon, said, "The acquisition
of MOAB is consistent with our strategic aim to build our global
energy and commodities franchise. MOAB is an excellent fit with our
existing crude oil and energy broking activities. It complements
our recent acquisition of PVM and further establishes our leading
position in the energy sector. The team at MOAB shares our
commitment to serving customers with professionalism and integrity
and we are delighted that the senior principals will be working
alongside us to build our energy business."
Kenneth Utting, President of MOAB, said, "In Tullett Prebon, we
have found an ideal partner for MOAB. Together we will be able to
expand and enhance our valuable franchise, extend our reach
geographically, reach more customers and provide an even better
quality of input on market depth and colour and service in
execution of oil trades."
Ends
Enquiries:
Stephen Breslin, Head of Communications
Tullett Prebon plc
Direct: +44 (0) 20 7200 7750
email: sbreslin@tullettprebon.com
Craig Breheny, Director
Brunswick Group LLP
Direct: +44 (0) 20 7396 7429
email: cbreheny@brunswickgroup.com
Further information on the Company and its activities is
available on the Company's website: www.tullettprebon.com
Further information on MOAB can be found at www.moaboil.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQMMGZNNNGGKZM
Tp Icap (LSE:TCAP)
Historical Stock Chart
From Apr 2024 to May 2024
Tp Icap (LSE:TCAP)
Historical Stock Chart
From May 2023 to May 2024