London Stock Exchange trims offer for clearing house LCH.Clearnet
26 Dec 2012
The London Stock Exchange Group (LSEG) has reduced its offer for a 60 per cent stake in clearing house LCH.Clearnet to €15 ($19.78) per share or €341million, after both companies arrived at a pricing agreement under new European regulations.
In March, the LSEG proposed to buy a 60-per cent stake in LCH for €20 per share or €463 million ($612 million), valuing the independent clearing house at €813 million.
The change in terms from the initial offer comes after weeks of fresh negotiations between LSEG and LCH over the price, due to continuing regulatory changes regarding capital requirements of clearing houses in Europe.
Under the new rules, clearing houses are expected to increase the amount of capital they hold as a financial buffer to protect them from the impact of a major customer defaults.
The new offer, which requires shareholders' approval, comprises €14-a-share in cash and a €1-a-share special dividend, with the option of either companies withdrawing from the deal without any break-up fees.
LCH.Clearnet, Europe's largest clearing house, is an independent clearing house group serving major international exchanges and platforms, as well as a range of OTC markets. It has a leading position as a multi-asset, multi-venue provider of clearing and risk management services.