Stricken foreign money agency Argentex in talks about emergency sale

A London-listed foreign money threat administration supplier, which was caught within the monetary crossfire of Donald Trump’s tariffs bombshell, is in superior talks about an emergency sale to a rival.

Sky Information has learnt that Argentex Group, which noticed buying and selling in its shares suspended on Tuesday, is negotiating a sale with a number of events, with IFX Funds, a privately owned firm, mentioned to be among the many contenders.

Banking sources mentioned a definitive cope with a purchaser may very well be introduced as quickly as Wednesday morning.

IFX Funds was mentioned to be considered one of a number of bidders which had been in discussions with Argentex’s advisers in the course of the course of Tuesday.

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Argentex’s web site lists the FTSE-100 insurer Aviva, asset supervisor Barings, and Triumph Bikes as shoppers.

In a inventory alternate announcement on Tuesday morning, Argentex mentioned it had been “uncovered to vital volatility in international alternate charges, notably in relation to the speedy devaluing of the US Greenback in opposition to different main benchmark currencies which has been precipitated by the varied latest bulletins from President Trump concerning tariff insurance policies and US authorities spending cuts”.

“In consequence, the corporate has skilled a speedy and vital impression on its near-term liquidity place, pushed by, inter alia, margin calls linked to its FX [foreign exchange] ahead and choices books.

“The corporate has taken numerous steps to protect money and improve the collateral acquired from its counterparties.”

Argentex’s assertion mentioned it was exploring choices for the corporate however didn’t consult with a possible sale.

One banker mentioned the corporate had had numerous approaches from suitors following the maelstrom brought on by latest volatility in foreign money markets, with the pound gaining strongly in opposition to the Euro and the greenback in latest weeks.

President Trump’s collection of tariff bulletins has shaken monetary markets internationally, with trillions of {dollars} wiped off fairness costs in latest weeks.

“The corporate additionally has the assist of its principal liquidity supplier and is in discussions with them concerning methods to additional strengthen its liquidity place given the continuing macro uncertainty, noting the chance of continued volatility within the foreign money markets and the related publicity introduced inside the Firm’s FX ahead and choices books,” Argentex’s assertion on Tuesday morning added.

“Within the occasion that the volatility in foreign money markets worsens materially, then the corporate’s monetary liquidity place, if not strengthened within the close to time period, can be considerably stretched.

IFX is predicated in London, with workplaces in Dubai and Warsaw.

It’s run by chief government Will Marwick, its former chief working officer.

The id of the opposite events which had expressed an curiosity in shopping for Argentex was unclear.

Argentex floated on London’s junior AIM market in 2019, and counts Lord Jones, the previous CBI boss, amongst its board members.

Bankers at Singers are mentioned to be advising the corporate on a possible sale.

A spokesman for Argentex declined to remark, whereas IFX Funds couldn’t be reached for remark.