NAGA Group in discussions on merger with “multi-country brokerage firm”
Further to our article earlier today that Germany/Cyprus based Retail FX and CFDs broker NAGA Group AG (ETR:N4G) saw its Revenues fall by more than 40% in the second half of 2022, the company has issued a formal (but brief) statement that it is in discussions to pursue a strategic transaction with a “multi-country brokerage firm”.
Trading in the company’s shares were halted on the Frankfurt Exchange before the statement went out, and popped about 20% when trading resumed afterward, at about €1.69 per share.
From the text of the announcement it doesn’t seem as though NAGA would be acquired, but rather merge with the still-unnamed other broker.
The full text of the announcement follows.
The Naga Group AG is in discussions to pursue a strategic transaction with a multi-country brokerage firm
Hamburg, 19 January 2023. The Naga Group AG (Naga) is in discussions to pursue a potential strategic transaction with a multi-country brokerage firm, potentially in the form of a merger of the two companies. Naga will maintain its current listing status following the consummation of any such transaction.
The transaction is subject to due diligence and is expected to be finalised subject to customary conditions precedent and regulatory approvals, and to close in Q4 2023.