RE: Parameta sale9 Jun 2024 11:25
Hi share monster.
I agree with your sentiments that the DOB has no intention to sell Parameta.
The US hedge funds that own a stake here are pushing for the Parameta sale to realise value for this company.
It's a double edged sword. If they sell - TP icap loses it's prime jewel and the best part of the business.
From that point of view - I think sale of Parameta is very bad for the company prospects. Parameta is also deeply integrated into the company. For example, even liquidnet feeds data into parameta, as well as other parts of TP icap, so the company is a unit where one part needs the other. So if you sell Parameta, you then need to hand over the data to Parameta going forwards, although you don't own parameta anymore! To me - I am not sure that would ever work!
I think it's possible but difficult.
I would prefer the minority sale of parameta over a full sale.
The reason being then TP icap can keep contorl over this integral part of the business. I also think I would want shares in parameta. But one does get the feeeling DOB doesn't want to do it. In all honesty, it's probably the right thing to do - the problem left will be how to create shareholder value? If the management don't know how - I agree need a new leader. With that said - the current one has done a good job so far compared to the previous one.