(Alliance News) - CMC Markets PLC has begun work on a potential break-up, Sky News reported on Sunday.
Both entities would be listed in London, though only one would carry the CMC name. One firm would contain CMC's spread-betting offering, and another will house its investment product platforms.
Sky News, citing City sources, said CMC's board could announce "within days" that it has started work on a break-up.
https://news.sky.com/story/tory-peer-cruddas-plots-800m-break-up-of-financial-markets-firm-cmc-12467551
Founder & Chief Executive Peter Cruddas is the largest shareholder in the company.
The stock closed down 0.8% at 259.00 pence each in London on Friday, valuing it at GBP754.8 million.
The stock tumbled over 25% in a single session in early September, after a profit warning.
At the time, it said client income retention was tracking moderately below its targeted 80% level.
It said that for financial 2022, which ends in March, it expects net operating income to settle in a range between GBP250 million to GBP280 million. CMC posted net operating income of GBP409.8 million for the previous financial year.
In the US last week, both pharmaceutical firm Johnson & Johnson and conglomerate General Electric Co announced plans to split.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
CMC Markets (CMCX)