CATALIST-listed trading platform developer Ayondo is going ahead to sell its UK unit Ayondo Markets Limited for £5.7 million to reduce its liabilities.
In a regulatory filing on Wednesday, Ayondo said it had entered into a sale purchase agreement on May 7 for the disposal of AML to Netherlands-registered BUX Holdings, a white label partner of the group. This will be done via the sale of Sycap Group ’s wholly owned shares in AML. Sycap is a 99.9 per cent-held subsidiary of Ayondo Holding AG, which in turn is owned by Ayondo.
Ayondo also said its board had confirmed that the capital ratio figures submitted to regulator Financial Conduct Authority in the UK in AML’s quarterly reports were in line with market practice. The board also noted that the FCA has not raised any concerns on the computation of the Common Equity Tier 1 ratio, Ayondo said.
It was also not able to capitalise on improved volatility during the last quarters of 2018 due to tighter regulatory capital position as a result of its declining cash situation. This had also reduced marketing spend, which in turn had an “adverse impact” on client acquisition, it said.