Plus Markets to close after sale process fails
ALTERNATIVE stock exchange Plus Markets yesterday announced that it will shut down after failing to find a buyer, bringing to an end more than six years of trading.
“The Board regrets to inform shareholders that the Company’s cash balance has reached a level at which the Board has informed the FSA that it intends to commence a process of orderly closure,” the firm said in a statement.
“The regulated activities of the group will be wound down over a period of up to six months in order to minimise market disruption.”
Plus said that since initiating a formal sales process at the start of February it has had approaches from “major international stock exchanges and trading platforms, inter dealer brokers, technology providers, private equity and other wealth funds” but that none of the expressions of interest progressed to a firm offer.
The market was set up in 2005 as a rival to the established AIM exchange but struggled to establish itself before the financial crisis reduced the number of small firms willing to seek a flotation.
Prominent firms listed on the market include Arsenal football club and brewer Shepherd Neme but at the end of April only around 160 firms were traded on the main exchange.
The company made a loss of £5.8m on revenue of £3m in 2010, its sixth consecutive loss-making year.
Shares in Plus – which is listed on AIM – closed yesterday down 74 per cent at just 25p.