Following on from its announcement on 19th July 2018, MXC Capital Limited (LON:MXCP) has today announced the completion of the proposed sale of 25% of the issued share capital of MXC Capital (UK) Limited to Ravenscroft Holdings Limited for a cash consideration of £2.25 million.
MXCUK is a subsidiary of MXC and is the holding company of the Group’s transactional businesses. Completion of the Investment was conditional upon the Financial Conduct Authority’s consent to the change of control of MXC Capital Markets LLP, the Group’s corporate finance practice which is authorised and regulated by the FCA, which has now been received.
The consideration for the Investment is payable in cash as follows; £1.5 million on Completion, with £0.75 million to be paid on 2 January 2019.
Furthermore, in the announcement of 19 July 2018 the Company detailed its intention to establish an Employee Benefit Trust to buy ordinary shares of no par value in the capital of MXC in the market to be held to satisfy existing and future share incentivisation awards for the benefit of employees and certain directors of MXC.
MXC Capital Limited has also announced that the EBT has now been established and will initially be funded by way of a loan of £2 million (with an interest rate of 2% above the Bank of England base rate) from MXC Guernsey Limited, the Group’s investment holding company, with further funding to be provided as and when appropriate. Oak Trust (Guernsey) Limited, as trustee of the EBT, has absolute discretion and independence in respect of all trading decisions it may make in respect of the purchase of Ordinary Shares.
