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.
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.
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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."
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