29 September, AtoZForex, Lagos – Varengold, the German bank with a strong FX brokerage services has experienced some management reshuffling in recent times. Resulting in the exit of top management officials. The German broker announced last month that CEO Yasin Sebastian Qureshi along with Executive Board Members, Mohammad Hans Dastmaltchi, Steffen Fix and some other board members will leave the firm.
FX business to be scrapped?
This is rumored to be as a result of the acquisition of a majority stake in the broker by a London based hedge fund. It is understood that the acquiring firm is focused on reducing concentration in its forex business.
These steps have been in contradiction with the founders’ will, therefore prompting the ousting of founders Yasin Sebastian Qureshi and Steffen Fix. The degree to which the new owners intend to downgrade concentration in its Forex and CFDs business remains unknown, and maybe even scrap it entirely.
Varengold closes Dubai operations
More will be clarified in the upcoming Extraordinary General Meeting of the board on the 2nd of November. Although no official details have been released, information reaching us points to the fact that part of the restructuring of the firm has already led to a drastic decision. As the plan encompasses; Varengold closes Dubai operations and focusing on its European operations.
Hence, shutting down the Dubai office. On top top this, it is believed that the real value in Varengold is its German bank license. Especially, as this license got an upgrade recently upgraded to a full bank license.
Varengold to change path?
Since inception, the German bank has been focused on its FX brokerage operations. The new management of the firm seems to have another intention for the firm. Varengold holds an investment bank license acquired since 2003, under regulation of the German financial regulator BaFin.
Varengold obtained a commercial banking license in 2013 which seems to be the area of emphasis of the new owners. Additional capital is being raised up to €1 million, intended to ensure further growth of the company.
Varengold has experienced choppy business activities in the last few years, reporting weak metric in 2013. However, this was overturned in 2014 as they reported earnings per share (EPS) of €0.12 in 2014 versus €-2.28 in 2013.
Stay tuned with AtoZ Forex for the latest update on the case, considering that more will be revealed with Varengold's annual general meeting nearing.
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