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
"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.
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.