As foreshadowed here last month, investment concern Commoditrade is buying commodities broker Sucden's London Metal Exchange operations for £24 million.

AIM-quoted Commoditrade has agreed to buy a 75 per cent interest in French-owned Sucden's trading operations on the London Metal Exchange, which have increased profits in three years from £1.8 million to £7.1 million under team leader Christopher Adams. Commoditrade has raised £18 million gross (£15.2 million after hefty expenses of £2.8 million) at 12.5p to fund the £14 million cash element, in a placing which will reduce the stake held by financier Andrew Regan's Corvus Capital from 76 to 21 per cent.

Strand Partners is nominated adviser and WH Ireland broker to Commoditrade, which says it completed the placing in two hours. Executive chairman Graham Butt has invited Adams and fellow Corvus director Geoffrey Conway-Henderson onto the Commoditrade board.

Shares in Commoditrade, which lost £180,000 last year as a virtual shell, have gained 6.25p to 18.5p this morning on appreciation that paying £24 million for three quarters of a £7.1 million profits stream looks a bargain – as long as Adams and his team continue to call the metals markets right. Corvus has risen 0.25p on the hope that 21 per cent of Commoditrade with the Sucden team is worth more than 76 per cent of a shell and the prospect of more deals elsewhere.

Both still have speculative possibilities.

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