Freetrade faces investor backlash over £160m IG Group sale
Freetrade faces investor backlash over £160m IG Group sale
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Freetrade, the British stock-trading app, is facing a backlash from early investors after announcing a sale to London-listed IG Group for a fraction of the valuation it targeted during earlier fundraising talks. Sky News has spoken to a number of Freetrade shareholders who reacted with dismay on Thursday to the £160m sale of the company.
The deal, worth up to 119p-a-share to Freetrade investors, comes just months after it reported the first profitable half-year in its six-year history. Money latest: Millionaire urges end to 'obsession with work-life balance'. Less than six months ago, Viktor Nebehaj, Freetrade's co-founder and chief executive, told Sky News: "Right now, Freetrade is in its strongest financial position in its history.
"It's more important than ever that we focus on our core market and its enormous growth prospects.". The takeover was described by one early investor as "a nonsensical deal". UK economy just about returns to growth after two months of contraction. BP to cut 4,700 jobs and 3,000 contractor roles from its global workforce.
Five months after Labour's election victory the UK economy was the same size as it was in July. "I feel completely robbed by Freetrade and will lose 87% of my investment as a result of this nonsensical deal. "Crowdfunders like me supported them in their growth journey and now they have dropped us like a stone when they no longer need us.
