LSE revises offer for majority stake in LCH Clearnet
09 March 2013
The London Stock Exchange Group yesterday revised its earlier offer to buy a majority stake in LCH Clearnet, Europe's largest clearing house for financial transactions, to €328 million ($426.4 million) in cash in order to add debt and currency clearing business to its portfolio.
The LSE Group operates the the world's fourth largest bourse, London Stock Exchange.
LSE Group, which holds 2.3 per cent in LCH Clearnet, will now buy an additional 55.5 per cent for €15 ($19.55) a share, comprising €14 in cash and a deferred consideration of €1, down from an original offer of €20 that had been agreed in March 2012.
In March, the LSE Group proposed buying a 60-per cent stake in LCH for €20 per share or €463 million, valuing the independent clearing house at €813 million. (See: London Stock Exchange to buy controlling stake in LCH.Clearnet for $612 mn)
Its current offer values the whole of LCH Clearnet at €633 million (£544 million).
The change, from the initial offer came after months of fresh negotiations between LSE Group and LCH Clearnet over the price, due to continuing regulatory changes regarding capital requirements of clearing houses in Europe.