LONDON (dpa-AFX) - London Stock Exchange Group Plc (LSE.L) Monday announced that it has provisionally agreed to make a revised offer for a majority stake in LCH.Clearnet Group Ltd. for 15 euros per share, about four euros lower than 19 euros per share agreed earlier. The companies have agreed to extend longstop date of transaction for finalizing detailed terms of the revised offer until January 31, 2013.
It was on March 9, 2012, that the bourse operator agreed to acquire a majority stake in swaps clearinghouse LCH.Clearnet for 463 million euros, or 386 million pounds ($612 million), in cash.
Following discussions of implications of the recommendations from the European Securities and Markets Authority and the European Banking Authority, the LSE and LCH.Clearnet have now provisionally agreed that LSE Group will propose for a majority stake of up to 60 percent of LCH.Clearnet for a revised offer of 15 euros per share.
The offer of 15 euros per share comprises 14 euros per share in cash payable by the LSE Group on completion of the transaction. It also includes 1 euro per share in cash payable by the LSE on September 30, 2017, subject to acceleration or delay in certain limited circumstances.
The new arrangement replaces the 1 euro special dividend announced earlier. The revised cash offer assumes a 300 million euros capital raise.
Upon completion of transaction, LSE has also agreed to participate in respect of its post transaction pro-rata share of the LCH Clearnet. However, the LSE Group said there can be no certainty that a revised offer will be made.
As per the earlier terms, LCH.Clearnet shareholders were to receive 20 euros per share, comprising 19 euros per share in cash plus 1 euro per LCH.Clearnet share from a special dividend payable by LCH.Clearnet in five years, subject to deductions.
In September last year, LSE had won the backing of LCH.Clearnet's board to take over the clearing exchange. London-based LCH.Clearnet was created in 2003 through the merger between the London Clearing House and Clearnet, a Paris clearer. It clears cash equities for the LSE as well as commodities, energy, freight, repos and also over-the-counter derivatives, which is the primary attraction for bidders.
LSE.L is currently trading at 1,097 pence, up 0.37 percent, on a volume of 49,416 shares.
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© 2012 AFX News
