RE: Break-up?14 Nov 2021 18:56
Abrdn are paying £1.5bn for ii. ii's revenues in 2020 were £133m, with over £50bn in AUM.
CMC's non-leveraged side did £55m in revenue, with almost £40bn in AUM. Their organic client growth was also higher than ii's.
CMC currently has a market cap of £750m and net cash of £400m. The board has rightly recognised that they can split the company into two and sell the non-leveraged side to an asset manager for £500m+. This would leave the spread-betting side which currently generates over 80% of CMC's profits, and would retain the £400m in cash. This could unlock significant shareholder value.