IPGL Ltd. said its wholly owned subsidiary, INCAP Finance BV, agreed to sell 6 million shares in ICAP Plc by means of an institutional placement to be conducted by HSBC Bank Plc.
The majority of the proceedings are to pay down a loan with HSBC, which has been extended to August 2015, from September 2011, IPGL said in a statement today. IPGL has reduced its borrowings to about £130 million ($204.3 million) in November from £335 million in October 2008, it said.
Michael Spencer, ICAP’s chief executive officer, holds a majority of the issued shares of IPGL, which invests in other financial services companies and has an interest in City Index Ltd., a currency, spread betting and contract for difference brokerage, according to ICAP’s 2010 annual report and City Index’s website.
After the sale, IPGL will hold more than 105 million ICAP shares, about 16 percent of the total outstanding, it said today.