Staff get a stake in Peel Hunt after £74 million buy-out deal

City stockbroker Peel Hunt today bought itself out of Belgian bank KBC in a £74 million deal which will see most of its 136 staff become shareholders.

The deal, which has taken 12 months to arrange, is being backed by 10 wealthy individuals led by Cox Insurance tycoon Neil Utley who will end up with 25% of the company while staff own the other 75%.

Chief executive Simon Hayes said the buy-out would enable the broking firm, best known for its small and medium-sized company broking and huge trading desk, to grow organically without outside interference.

KBC bought Peel Hunt, which was founded in 1989, shortly after it floated on the junior AIM stock market for £218 million in 2000, making fortunes for its founders Charles Peel and Christopher Holdsworth-Hunt.

KBC had to be bailed out to the tune of 7 billion (£5.85 billion) by the Belgian government during the banking crisis.