Icap bondholders approve sale of voice broking arm

Icap’s bondholders have approved the interdealer broker’s planned sale of its hybrid voice broking and information business to Tullett Prebon.

The FTSE 250 company said holders of the £125m 5.5% guaranteed notes due July 2018 and holders of the €350m 3.125% notes due March 2019 have consented.

Last week, Tullett shareholders approved the acquisition at an extraordinary general meeting.

Under the terms of the deal, Tullett will issue a parcel of new shares greater than its current share capital so that once the deal is completed, Icap will own 56% of the merged entity before distributing 36.1% of Tullett to its own shareholders.

Once the deal is concluded, current Tullett shareholders will own 44% of the enlarged company, 36.1% will be owned by Icap shareholders and the remainder by a NewCo holding company of the Icap business.

Tullett will also take on gross debt of £330m with the acquisition and the share issue means the deal is expected to be dilutive in first year.

At 1435 GMT, Icap shares were down 0.5% to 460p and Tullett shares were down 0.4% to 351.60p.