London Stock Exchange to acquire majority stake in LCH.Clearnet

After completion of the transaction, LSEG will become the majority holder with up to 60% of LCH.Clearnet’s Issued Share Capital.

According to terms of the deal, LCH.Clearnet shareholders will receive EUR20 per LCH.Clearnet Share acquired, comprising cash consideration of EUR19 per LCH.Clearnet Share payable by LSEG under the Offer plus EUR1 per LCH.Clearnet Share from the Special Dividend payable by LCH.Clearnet.

The total implied value of LCH.Clearnet under the terms of the transaction is EUR813m (£677m), which includes a total implied Offer value of EUR772m (£643m) and assuming EUR41m (£34m) paid under the Special Dividend.

According to the company, the maximum consideration to be paid by LSEG at completion, assuming LSEG acquires 60% of CH.Clearnet’s Issued Share Capital, will be EUR463m (£386m), which will be financed from existing cash resources and bank facilities.

The deal will enable the firms to partner as a global leader in multi-asset, multi-venue clearing and risk management services, providing customers with an enhanced product and service offering.

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