The Channel Islands Securities Exchange Limited (CISE) is set to acquire the European marketplace for SMEs, the Danish-based GXG Markets A/S (GXG).
The proposed transaction will be completed between CISE’s wholly owned subsidiary, The Channel Islands Securities Exchange Authority (CISEA) and the Swedish-headquartered GXG Global Exchange Group AB and GXG.
The deal means that CISE will acquire the assets of GXG, including use of its trading system, its London offices and three London-based members of staff.
Current listings on the GXG Official List, GXG Main Quote and GXG First Quote which meet CISEA’s listings and disclosure rules will have the opportunity for seamless migration to CISE by 18 August 2015. GXG is currently communicating with the board of directors of each relevant company regarding the terms of the proposed transaction and its implications.
The deal will allow all brokers, corporate advisors and due diligence partners connected to businesses on all GXG marketplaces to be transferred across to CISEA.
Jon Moulton, Chairman of CISE, said: “We are very pleased to have this deal in place. The acquisition of GXG will mean that we’re able to quickly and cost-effectively grow the business of CISE. The potential new listings stream and infrastructure enhancements represent a huge stride forward in the continued development of CISE.”
Carl-Johan Högbom, Chairman of the GXG Markets, said: “We feel confident that CISE will take great care of the SME marketplaces and our London employees. We will work closely together to make the transfer as smooth as possible for our clients.”
GXG Markets was established in 1998 as a Danish authorised marketplace aimed at providing SMEs with a more competitive environment for raising capital and the trading of shares.
GXG announced on 29 June 2015 that it was suspending the acceptance of new admissions to its markets. On 6 July 2015, GXG announced that from 18 August 2015 it would be relinquishing its operating licenses issued by the Danish Financial Supervisory Authority, Finanstilsynet.
Mr Moulton added: “CISE’s structure and our sensible approach to regulation means that we are ideally placed to take on the existing business of GXG. This will provide the platform for CISE to grow its number of listed SMEs and micro-cap businesses, as well as attract business from other niche market sectors.”
Mr Högbom added: “We strongly believe that CISE will continue to develop the SME-marketplaces so that they become the leading European market places for small companies. We are pleased to have found a quality solution for GXG marketplaces moving forward.”
CISEA is holding discussions with Finanstilsynet about the proposed transaction, which is expected to be completed shortly and has kept its regulator, the Guernsey Financial Services Commission (GFSC), informed of developments.