Intercontinental Exchange Group lines up investors to acquire part of Euronext
28 May 2014
Intercontinental Exchange Group (ICE) has lined up European long-term investors to acquire a third of Euronext in its upcoming listing, aiming to allay the concerns of local regulators that the pan-European bourse would be taken over by another foreign firm, Reuters reported.
ICE said today it would push ahead with the initial public offering (IPO) of Euronext, which, according to two sources familiar with the matter could value the European exchanges business at over €1.5 billion ($2.1 billion).
The US group had always intended to spin-off Euronext following its $11-billion deal last year for the takeover of NYSE Euronext, operator of the New York Stock Exchange. At the time ICE said it was not interested in the European assets of the company.
However, its plans had been complicated by concerns in countries such as France and the Netherlands that Euronext might end up with some foreign rival such as the London Stock Exchange and Nasdaq.
ICE's takeover of NYSE Euronext had received the regulators nod on condition it kept a 25-per cent stake in Euronext for three years, or found appropriate investors to replace it (See: NYSE Euronext and ICE in $8.2-bn merger).
According to sources familiar with the matter who spoke to Reuters last month, ICE had lined up a group of European investors to buy 25-30 per cent of Euronext.
According to the US group, it had lined up so-called ''anchor'' investors to take a 33-per cent stake.
According to ICE, the investors, including French banks BNP Paribas and Societe Generale, Dutch firm ABN Amro, Belgian government investment vehicle SFPI, European clearing house Euroclear, and a unit of Portugal's Banco BPI would hold their shares for at least three years.
Euronext, which has stock exchanges operating across Europe, had planned a listing of its shares initially in Paris, Amsterdam and Brussels, The New York Times reported. The company's plan also included listing in Lisbon after the public offering before the fourth quarter.
ICE, which acquired NYSE Euronext in November 2013, did not announce the expected price range of shares or the amount it expected to raise through the offering.
According to a statement by Euronext's chief executive, Dominique Cerutti, the move to make Euronext an independent exchange centred on an ''increased desire for transparency, a new level of demand for diverse sources of capital and the emerging economic recovery in Europe.''
