The London Stock Exchange Group has forwarded a revised offer amounting to Eur328 million cash to purchase the majority stake in LCH Clearnet. The deal opens up a revenue stream for the exchange to participate in the debt and currency clearing markets.
The recommended offer provides that the LSE would acquire 55.5% in LCH Clearnet. LCH Clearnet earns money through participation as a middle man when financial trades could not be completed by acting as the guarantor. LCH investors that would agree would be receiving Eur15 per share that totals the issued capital shares value of the company at Eur633 million.
According to LSE CEO Xavier Rolet, "We will promote greater innovation, choice and competition in the risk management industry, especially in listed derivatives. This will build upon the successes we have already with our existing equity and fixed income trading partnerships, Turquoise and MTS."
With the purchase, LSE would own 57.8% of LCH while other shareholders would retain 42.2%.
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