JPMorgan poised to make 157% return on MF Global’s LME stake

Metdist Trading

Goldman’s total stake is valued at 132.3 million pounds under the terms of Hong Kong Exchanges’ offer. Joanna Carss, a spokeswoman for Goldman in London, declined to comment.

Metdist Ltd. and Metdist Trading Ltd., U.K. metals trading companies owned by the Bagri family, have a combined 1.21 million LME shares, making the group the third-largest shareholder. Its stake is valued at 130.4 million pounds, or about 165 times Metdist Ltd.’s profit in 2011. The company’s fiscal year ended March 31.

Raj Bagri, who was chairman of the LME from 1993 to 2002, is a director of Metdist Ltd. and Metdist Trading Ltd., according to Companies House filings in 2011. His son Apurv Bagri is also named as a director of the two companies.

Sucden Financial Ltd. with 362,000 shares, would make about 39 million pounds if it sold its stake. The broker’s profit in 2011 was 9.04 million pounds on operating profit of 10.9 million pounds, according to a Companies House filing.

Triland Metals Ltd., which has 300,000 shares, would gain 32.3 million pounds on the sale of the LME. The broker’s profit for 2011 was 9.68 million pounds, compared with 12.9 million pounds the year before. Its fiscal year ended March 31, according to Companies House.

LME Shares

The LME issues two share classes. There are 12.9 million ordinary shares conferring ownership and voting rights. JPMorgan, Metdist Trading, Sucden Financial and Triland Metals are category 1 members of the bourse, giving them the right to trade on the floor of the exchange. Goldman is a category 2 member, which means it can’t participate in the so-called ring, home to London’s last open-outcry trading.

The takeover needs the approval of the U.K. Financial Services Authority as well as LME shareholders. It doesn’t need shareholder consent in Hong Kong.

Bloomberg News

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