Stock Update (NYSE:FXCM): FXCM Inc Completes Sale of FXCM Hong Kong to Rakuten Sec
FXCM Inc (NYSE:FXCM), a leading online provider of foreign exchange (FX) trading and related services, today announced that Forex Trading, LLC, a subsidiary of FXCM Newco, LLC (“FXCM”) has completed its sale of FXCM Asia Limited (“FXCM Hong Kong”) to Rakuten Securities, Inc. (“Rakuten Sec”), a top 5 FX broker in Japan, and a subsidiary of Rakuten, Inc. (“Rakuten”) (TOKYO:4755), one of the world’s largest Internet services companies, for a total consideration of approximately $38 million.
Rakuten Sec will continue to use the FXCM trading system for FXCM Hong Kong clients under a white label agreement with FXCM and will continue to service local forex traders as FXCM Asia powered by Rakuten Sec.
Additionally, FXCM anticipates repaying $33 million outstanding under its credit agreement with Leucadia and will have repaid $115 million to date, leaving $195 million remaining.
“The company remains focused on completing our near-term strategy of eliminating the Leucadia debt through the sale of non-core assets and cash generated through operations as well as accelerating the growth of our core business through a number of FX and CFD initiatives,” said Drew Niv, CEO of FXCM. “With the close of this deal we have made another positive step towards completing our goals.” (Original Source)
Shares of FXCM Inc closed last Friday at $0.89. FXCM has a 1-year high of $17.44 and a 1-year low of $0.74. The stock’s 50-day moving average is $0.97 and its 200-day moving average is $1.59.
FXCM Inc is an online provider of foreign exchange trading and related services to retail and institutional customers. It offers its customers the ability to trade contract for differences, spread betting, equities and equity options.