Insider Media Limited

Birmingham-based stockbroker WH Ireland has cut its ties with WHI Australia after agreeing to sell its remaining stake in the business.

The company has disposed of its remaining 37.3 per cent share in a deal worth about £960,000. WHI Australia's management team has acquired the majority of the shares.

WH Ireland bought a 51 per cent share of the Perth-based stockbroker WHI Australia, the holding company of DJ Carmichael, in 2005 for about £1.5m. It later increased its holding further, before disposing 39 per cent in 2009.

The company's board said it had decided that the funds employed in Australia could be "better deployed in developing its core activities in the UK". However, it will continue to work with WHI Australia on "mutually beneficial commercial opportunities".

The book value of WH Ireland's interest in WHI Australia was £1.6m at 30 April 2011.

Paul Compton, the chief executive of WH Ireland, said: "This disposal is the latest in WH Ireland's programme of realising certain of its investments which has since the beginning of September 2010, resulted in the realisation of approximately £3.2m of cash.

"As a result, all WH Ireland's bank overdrafts have been repaid and sufficient cash has been made available to develop our market making and CFD (contract for difference) trading businesses."

As part of the disposal, WH Ireland chairman Rupert Lowe has acquired 4,300 shares in WHI Australia from WH Ireland. The deal takes his total holding up to 10.3 per cent.

WH Ireland said that Lowe did not take part in the negotiations or the board's decision to dispose its shares.