ICAP Acquires APB Energy

Oct 04, 2002, 01:00 ET from APB Energy, Inc.

    LOUISVILLE, Ky., Oct. 4 /PRNewswire/ -- An ICAP company, Garban-
 Intercapital North America Inc., has completed the acquisition of the business
 of APB Energy, Inc for an initial cash payment of US$15.5 million.
     Further payments, which are contingent on the future earnings of the
 business, will be made over four years.  The payment in 2003 will be paid in
 cash.  The payments in 2004, 2005 and 2006 will be made in cash or up to 65%
 in ICAP plc shares, at ICAP's option.  In the event that the business
 continues to perform well, it is anticipated that such additional payments
 will amount to circa US$30 million. (Irrespective of the performance of the
 business, the total amount payable for this acquisition cannot exceed US$100
     APB Energy is a leading energy broker in the US and European markets
 providing execution services and coverage of electricity, natural gas, coal
 and other energy related products.  The business has net assets of
 US$4.4 million.  It had revenue of $32.5 million and a normalized pre tax
 profit of $8.7 million in the year to December 2001, which included only two
 months of activity for the European business acquired in November of that same
 year.  Through its online platform, truequote.com, APB offers real-time price
 discovery and execution to complement its voice broking services.  All 165 of
 APB Energy's directors and staff will be remaining with the company.
     Michael Spencer, Chief Executive of ICAP plc said  "APB Energy has a
 strong market position in electricity, natural gas, coal and other energy
 related products.  We believe that energy broking has significant long term
 potential and that APB Energy can provide an outstanding entry for ICAP into
 the U.S., Nordic and other regional European markets.  Assuming current market
 activity levels continue, we expect this acquisition to enhance headline EPS
 in 2003/4."
     "It has long-been APB's mission to build the largest  energy brokerage
 company in the world.  In ICAP, we found a partner with similar core values
 and a global commitment to excellence.  I am confident the APB-ICAP
 combination will accelerate positive results for all of our stakeholders,"
 said Dennis W. Crum - Founder and CEO of APB.
     ICAP plc
     Michael Spencer   Group Chief Executive Officer (44) 20 7638 7592
     Mike Sheard       Director of Corporate Affairs (44) 20 7574 7771
     Matthew Smallwood College Hill                  (44) 20 7457 2020
     APB Energy, Inc
     Dennis W. Crum    Chairman and Chief Executive Officer  (1) 502 212 4900
     Todd A. Creek     Chief Financial Officer               (1) 502 212 4900
     Notes for Editors:
     ICAP is the world's largest inter-dealer broker.  The Group is active in
 the wholesale market for OTC derivatives, fixed income securities, money
 markets, futures, foreign exchange and energy and equity derivatives with
 daily turnover in excess of $300 billion.  ICAP has 2200 staff worldwide.  Its
 wholly owned subsidiary, Intercapital Commodity Swaps Ltd., is a leading
 specialist commodity derivatives business covering oils and oils products,
 bullion and precious metals, electricity, coal and weather derivatives.  It
 has a total of 50 staff in Sydney, Singapore and London.
     ICAP plc (IAP) is listed on the London Stock Exchange and is a FTSE 250
 company.  For more information go to www.icap.com
     APB Energy, Inc and its affiliates APB Financial LLC and APB Energy Europe
 AS provide a full-service OTC commodity brokerage specializing in the global
 energy industry.  APB is headquartered in Louisville, Kentucky with offices in
 Houston, Chapel Hill, Bergen and Amsterdam.  The company was founded in 1993.
 For more information go to www.apbenergy.com
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SOURCE APB Energy, Inc.