PhillipCapital Group to buy MF Global Sify Securities
Singapore’s PhillipCapital Group will buy a majority stake in MF Global Sify Securities India, and its units including MF Global Commoditites India, according to a communication sent to the brokerage's clients on Wednesday.
PhillipCapital has entered into a share purchase agreement with MF Global Overseas and Sify Technologies on Tuesday, Vineet Bhatnagar, managing director of MF Global Sify Securities said in the communication.
Separately, PhillipCapital, which runs brokerage and asset management business across 13 countries, said it would plan to rename the business Phillip Securities India.
“The company will soon submit necessary documents to obtain regulatory approvals for change in dominant promoter group and will be renamed to reflect the new ownership. We also wish to state that the senior management team and the key business heads continue to be with the company,” Bhatnagar said.
“The acquisition will create a strong platform in the global exchange-traded securities and derivatives space and the benefits of such strengths will provide tremendous value to our customers,” he added.
When contacted, Bhatnagar declined to share how much stake PhillipCapital would acquire in MF Global Sify Securities citing non-disclosure agreement. MF Global Sify Securities has about 320 employees.
Bankrupt US futures broker MF Global owns 70 per cent in MF Global Sify Securities, while Indian internet and media firm Sify Techologies owns the rest.
On Tuesday, Sify Technologies said it would sell its entire 30 per cent stake in MF Global Sify Securities for an undisclosed amount.
MF Global filed for bankruptcy in October last year after revealing exposure to risky European sovereign debt. Its chief executive Jon Corzine resigned days later.
Provisional liquidators reported in November they had received more than 50 offers to buy MF Global's entire Asian operations but difficulties in unwinding trading positions meant they failed to reach an agreement on a sale.