Commoditrade has conditionally agreed to acquire Tambelan’s interest in its contract with Sucden, a UK-based commodities trading firm, in respect of metals trading by the brokerage’s LME trading team on the London Metal Exchange. This is 11 seat members on the LME.
Commoditrade has agreed to acquire Tambelan’s interest in its contract with the brokerage for an initial aggregate consideration of £24.4mn, to be satisfied as to the payment of £14mn in cash and by the issue of 83.4mn new ordinary shares of 12.5p each.
In addition, 6mn deferred consideration shares may be issued on the achievement of certain performance criteria. (Buying on multiple of 3.4x historic. Fully diluted after placing multiple of 6.2x historic @12.5p placing price).


The acquisition will allow Commoditrade to receive 75% of the trading profits (after certain expenses) attributable to the LME Trading Team.
Gross profits attributable to the Tambelan agreement have grown over the last three years to £7.1mn in the year ended December 31, 2005.
The LME trading team is well established and successful, with an in-depth knowledge of the markets on which it is represented and has developed strong client and market relationships.
Proposed non-executive board appointments: Christopher Adams who is the head LME trader at the brokerage and Geoffrey Conway-Henderson who has over 35 years experience in the finance industry, dealing primarily in derivatives, interest rate swaps and options.