London Stock Exchange agreed revised offer for LCH.Clearnet

London Stock Exchange Group (LSE) has agreed the terms on a revised recommended cash offer for a majority stake in LCH.Clearnet's issued share capital, which LSE believes 'strongly positions' it for a long-term, leading role in global market infrastructure.

London Stock Exchange Group (LSE) has agreed the terms on a revised recommended cash offer for a majority stake in LCH.Clearnet's issued share capital, which LSE believes 'strongly positions' it for a long-term, leading role in global market infrastructure.

LSE will acquire up to a further 55% in LCH.Clearnet, a provider of clearing and risk management services, in addition to its existing 2.3% holding. LCH shareholders who accept the offer will receive €15 per share, comprising a cash consideration of €14 and a deferred consideration of €1.0.

As such, the maximum total investment made by LSE will be €536m (£461m). Of this, a maximum initial consideration of €328m (£282m) will be paid at completion of the offer, with up to a further €23m (£20m) to be paid as a deferred consideration in 2017.

The transaction will be immediately earnings enhancing for LSE.

Once the offer has been completed, LCH.Clearnet will undertake a €320m (£275m) capital raise to meet increased regulatory capital requirements, in which LSEG will participate pro rata to its post-Completion shareholding in LCH.Clearnet.

LSE's participation in this will be up to €185m (£159m).

The revised offer is conditional on LSE receiving enough acceptances to mean that it owns 50% (plus one share) of LCH.Clearnet.

Chris Gibson-Smith, the Chairman of LSE, said: "This is a compelling transaction and we are delighted to be partnering with LCH.Clearnet as global leaders in market infrastructure. Experience, stability and trust are cornerstones of our industry and together, we have secured the enlarged group's long-term role in the operation of international capital markets."

The company's Chief Executive Officer, Xavier Rolet, added: "Our partnership with LCH.Clearnet will be transformative. Together with our customers, we will promote greater innovation, choice and competition in the risk management industry, especially in listed derivatives. This new-style open-access clearing model, will build upon the successes we have already had with our existing equity and fixed income trading partnerships, Turquoise and MTS."

LSE's share price rose 0.5% to 1,403p by 09:15.

NR

Recommended

Saga’s figures are heading in the right direction – so should you buy?
Share tips

Saga’s figures are heading in the right direction – so should you buy?

Saga the over-50s travel and financial services specialist, has been struggling for years. But now, with the pandemic behind, it it is planning for fu…
5 Jul 2022
Director dealings w/e 1 July: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 1 July: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
5 Jul 2022
Britain’s ten most-hated shares – w/e 1 July
Stocks and shares

Britain’s ten most-hated shares – w/e 1 July

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
4 Jul 2022
Britain’s most-bought shares w/e 1 July
Stocks and shares

Britain’s most-bought shares w/e 1 July

A look at Britain’s most-bought shares in the week ending 1 July, providing an insight into how investors are thinking and where opportunities may lie…
4 Jul 2022

Most Popular

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
The income investor’s dilemma
Income investing

The income investor’s dilemma

Pay attention to dividend growth as well as initial yield when picking income trusts, says Max King.
4 Jul 2022