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CVC targets UK spread betting business

European private equity firm CVC Capital Partners is reportedly backing the management in a proposed public-to-private buy-out of IG Index. The deal values the UK spread-betting business at £150m.

IG Index was floated on the London Stock Exchange in July 2000 but became the focus of takeover speculation when the company's founder and major shareholder Stuart Wheeler revealed he was planning to sell his 24 per cent stake in the company, according to the Daily Telegraph.

The management buy-out team is understood to be led by Nat le Roux, who replaced Wheeler as IG Index's chief executive last year. Finance director Tim Howkins and chief operating officer Peter Hetherington are also thought to be involved.

CVC has emerged as front-runner to buy IG Index, beating a number of private equity rivals including Duke Street Capital, Electra and Bridgepoint Capital. Duke Street confirmed its interest in the sector late last year with the acquisition of Sporting Index, the UK sports spread-betting company, which it acquired for £55m.

CVC has completed a number of high profile deals in the last 12 months including the acquisitions of Scandinavian building material supplier Danske Traelast for E500m and German metering operation Viterra Energy Services for E845m, in April. The firm also acquired UK retailer Halfords for E665m last July.

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