Refco Inc. said it has received approval from the US Bankruptcy Court for its sale of substantially all of the assets of Refco’s regulated commodities futures business to Man Financial Inc., a wholly owned subsidiary of Man Group plc, for $282 million in cash and approximately $41 million of assumed liabilities and other considerations.
After a long session of bidding, Man Financial, Inc. was selected as the winning bidder, offering the highest and best bid for the assets of Refco’s regulated commodities futures business. The level of interest expressed by all bidders was extremely high and tangible recognition of the value and strength of the Refco franchise.
The sale represents approximately 40-percent premium over the net regulatory capital of the business. Under the terms of the sale, Refco will retain its net regulatory capital and other liquid assets for an aggregate value of approximately $1.25 billion.
William Sexton, Refco’s chief executive officer, said, “The sale provides the best possible outcome for Refco’s employees, brokers, customers and creditors. Man Financial has expressed their high regard for Refco’s people, products and services and looks forward to working with our employees to realize the potential that a combination of the businesses creates for global clients. This high regard was shared by each of the bidders who reviewed our company during this process.”