A London-listed currency risk management provider, which was caught in the financial crossfire of Donald Trump’s tariffs bombshell, is in advanced talks about an emergency sale to a rival.
Sky News has learnt that Argentex Group, which saw trading in its shares suspended on Tuesday, is negotiating a sale with several parties, with IFX Payments, a privately owned company, said to be among the contenders.
Banking sources said a definitive deal with a buyer could be announced as soon as Wednesday morning.
IFX Payments was said to be one of several bidders which had been in discussions with Argentex’s advisers during the course of Tuesday.
Any transaction is expected to be undertaken on a solvent basis, albeit at a discount to the roughly £52m valuation at which its stock was suspended.
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Argentex’s website lists the FTSE-100 insurer Aviva, asset manager Barings, and Triumph Motorcycles as clients.
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In a stock exchange announcement on Tuesday morning, Argentex said it had been “exposed to significant volatility in foreign exchange rates, particularly in relation to the rapid devaluing of the US Dollar against other major benchmark currencies which has been precipitated by the various recent announcements from President Trump regarding tariff policies and US government spending cuts”.
“As a result, the company has experienced a rapid and significant impact on its near-term liquidity position, driven by, inter alia, margin calls linked to its FX [foreign exchange] forward and options books.
“The company has taken a number of steps to preserve cash and increase the collateral received from its counterparties.”
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Argentex’s statement said it was exploring options for the company but did not refer to a potential sale.
One banker said the company had had a number of approaches from suitors following the maelstrom caused by recent volatility in currency markets, with the pound gaining strongly against the Euro and the dollar in recent weeks.
President Trump’s series of tariff announcements has shaken financial markets across the world, with trillions of dollars wiped off equity prices in recent weeks.
“The company also has the support of its principal liquidity provider and is in discussions with them regarding ways to further strengthen its liquidity position given the ongoing macro uncertainty, noting the likelihood of continued volatility in the currency markets and the associated exposure presented within the Company’s FX forward and options books,” Argentex’s statement on Tuesday morning added.
“In the event that the volatility in currency markets worsens materially, then the company’s financial liquidity position, if not strengthened in the near term, would be significantly stretched.”
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IFX is based in London, with offices in Dubai and Warsaw.
It is run by chief executive Will Marwick, its former chief operating officer.
The identity of the other parties which had expressed an interest in buying Argentex was unclear.
Argentex floated on London’s junior AIM market in 2019, and counts Lord Jones, the former CBI boss, among its board members.
Bankers at Singers are said to be advising the company on a potential sale.
A spokesman for Argentex declined to comment, while IFX Payments could not be reached for comment.
