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IQ Holdings is selling its remaining trading operations to its brokerís parent company Rivington Street Holdings.
Broker, PR and tip sheet publisher RSH is paying 5.2m shares for the market research businesses and taking on liabilities of around £1.8m - including money owed to Media Square which sold IQ one of the businesses. IQ intends to distribute most of the Plus-quoted RSH shares to its own shareholders. At an RSH share price of 29.5p, the value of the shares is £1.53m.
RSH says that the market research operations will provide cross-selling opportunities and reduce its reliance on the stock market. Cost savings have been identified and RSH says that it has cash to develop the businesses.
RSH owns 1.58% of IQ and the SF t1ps Smaller Companies Growth Fund, which it manages, currently owns 8.7% of IQ plus a £75,000 convertible. RSH boss Tom Winnifrith has a 0.02% stake in IQ. RSH has waived its rights as an IQ shareholder to RHS shares when they are distributed.
IQ will look to acquire a new business in the area of property, manufacturing or marketing. It will not be able to compete with the businesses it has sold for two years. RSH will loan IQ £50,000 for working capital.
At 0.1p a share, IQ is worth £1.26m.
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