Richard Fleming, Richard Heis and Mike Pink of KPMG LLP, the Special Administrators of MF Global UK Limited, announced today that, following a competitive bidding process, J.P. Morgan has agreed to purchase all of MF Global's shareholding - 600,000 Ordinary ‘A’ shares and 25,000 Ordinary ‘B’ shares - in the London Metal Exchange (LME). J.P. Morgan is a long-standing member of the exchange and an existing shareholder.
The transfer of shares is subject to confirmation by the board of the LME.
Richard Heis, joint special administrator of MF Global UK, said: “We received a great deal of interest in the LME shares and are pleased to be in the final stages of concluding a sale.
“The sales process for various aspects of the MF Global UK business continues apace and we are in negotiations with several parties to this end.”
The administrators will announce any further transactions once agreed.
Heis went on to say: “In the mean time, we have prepared a timeline for the return of client assets and client monies. This is currently being finalised and will be communicated to clients shortly. The principal features of the timeline include the setting of a bar date in respect of client assets (as provided for within the Special Administration Regime) and an expedited process for returning those assets where ownership issues are less complex. It will also set out a proposed timetable for agreement of creditor balances and distribution of client monies.”
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Notes to Editors:
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed joint special administrators of MF Global UK Limited, a UK based broker-dealer business, and MF Global UK Services Limited, which provides employee and pension services in relation to the UK operations, at 5pm on Monday 31st October 2011. MF Global UK Limited is a wholly owned subsidiary of MF Global Europe Limited which in turn is a subsidiary of MF Global Holdings Limited, a company incorporated in Delaware, USA, which filed for chapter 11 bankruptcy protection on 31st October.
The objectives of the administration are:
To ensure the return of client assets as soon as is reasonably practicable;
To ensure the timely engagement with market infrastructure bodies and the Authorities pursuant to regulation 13; and
To either rescue the Investment Bank as a going concern or wind it up in the best interests of creditors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.