Plus500 Buyback Millions Of Shares In Odey

Internet-based trading service Plus500 Ltd announced on Tuesday that it has repurchased GBP 101.3 million worth of its shares from Odey Asset Management LLP. This move, the company explains, was motivated by enticingly favorable pricing and the robust state of its own financials.

Approximately 7.3 million shares were bought back from Odey by Plus500 at a price point of 1,383 pence per share. This corresponds to roughly 8.2% of Plus500's issued share capital, creating a noticeable gap between it and the beleaguered investment firm. Plus500 intends to hold these newly acquired shares in its treasury.

The London-headquartered Odey Asset Management is currently battling a crisis, following assault allegations leveled against its founder, Crispin Odey.

On Wednesday afternoon, Plus500's shares saw an increment of 0.8%, trading at 1,493.00p each on the London Stock Exchange. While there has been a 17% drop in their value since the beginning of 2023, Plus500's market capitalization stands strong at GBP 1.35 billion.

In a public statement, Plus500 asserted, “Given the significant strength of the company's balance sheet and the prevailing circumstances, the board believes the purchase is in the best interest of all shareholders.” The company has seized this chance to acquire shares at an appealing price, aligned with its capital allocation and shareholder return policy.

Plus500 further clarified that this transaction was conducted separately from its ongoing USD 70.0 million share buyback scheme, first announced in February of this year. As of Monday, the company has reported repurchasing roughly USD 52 million of its own shares.

In other related news, Odey Asset Management has announced a halt on withdrawals from two of its funds and a closure of another fund, amid a marked increase in investor exits.

Specifically, the Brook Developed Markets Fund and Brook Absolute Return Fund, managed by the subsidiary Brook Asset Management, have been temporarily closed to withdrawals following a sudden surge in investor exits. Odey has also chosen to close its Swan fund after evaluating its future options.

This news comes on the heels of rumors that JPMorgan Chase & Co had cut connections with Odey, which has been embroiled in a controversy involving sexual assault and harassment charges against its founder, Odey.

Odey Asset Management, which manages over USD 4.4 billion in assets, said on Saturday that Crispin Odey will be leaving the business due to repeated allegations of unethical conduct. Despite these allegations, Odey maintains his innocence.

The investment firm is now making significant changes to the management of funds previously under the purview of its departing founder. Furthermore, it has announced a rebranding plan to distance itself from the scandal, which will likely involve removing Odey's name from the hedge fund.

Despite the turmoil, Odey asserted on Monday that its funds remain open “as per usual business,” even as it reportedly deliberates imposing additional restrictions.

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