Broker declares shares gifted in exchange for loans
Vic Thompson, founder of Thompson Heath & Bond has admitted pledging shares in exchange for loans - a move similar to that of disgraced Carphone Warehouse founder David Ross.
Although such arrangements are allowed, they must be disclosed to the company in question. Thompson claims to have only realised this after reading of David Ross, the Carphone Warehouse boss who used shares to finance a personal loan - unlike Thompson, who used them in a business capacity.
Thompson pledged his own THB shares in January in exchange for loans from Allied Irish Bank to finance THB's acquisition of PWS International, a rival broker.
"We needed AIB consent for the acquisition to go ahead," Thomson said. "As part of the acquisition I had gifted 1.1 million of my shares to enable some of the PWS debt to be acquired. AIB was looking to get an additional guarantee."
THB said in January that Mr Thompson had gifted 1.15 million shares to an acquisition vehicle, Guilford Services Limited, but failed to make any further disclosure.
THB this morning confirmed the story. “It is a technical breach and has had no impact on shareholders and we disclosed it as soon as we were told of it by Vic,” a company spokesman said. “Vic’s actions were in the interest of our shareholders as they were designed to ensure the PWS deal was completed.”
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