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LSE agrees reduced price for stake in LCH.Clearnet

London Stock Exchange Group announced on Monday that it has shaken hands on a deal which will see it purchase a majority stake in LCH.Clearnet, but at a reduced price to that agreed back in April.

London Stock Exchange Group announced on Monday that it has shaken hands on a deal which will see it purchase a majority stake in LCH.Clearnet, but at a reduced price to that agreed back in April.

The company will now purchase the stake at €15 a share, around four euros lower than previously agreed price.

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The two groups have agreed to extend the longstop date of the transaction until January 31st 2013 in order to finalise the detailed terms of a revised offer.

LSE has provisionally agreed to make a revised offer for a majority stake of up to 60% of LCH.Clearnet comprising €14 per share in cash, which will be paid on completion of the transaction, plus a further one euro per share in cash paid at the end of September 2017 (replacing a previously announced one euro special dividend) which will be reduced as a result of any claims.

The group said the offer price is based on an assumption of a €300m capital raise.

In a statement LSE said: "Subject to completion of the transaction, LSE has agreed to participate in respect of its post transaction pro-rata share (expected to be approximately, but no more than, 60%) of the LCH.Clearnet capital raise, provided that continuing LCH.Clearnet shareholders commit to fund the balance of the capital raise."

NR

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