London Stock Exchange Group PLC Acquisition (5418E)
19 October 2018 - 5:00PM
UK Regulatory
TIDMLSE
RNS Number : 5418E
London Stock Exchange Group PLC
19 October 2018
19 October 2018
London Stock Exchange Group to increase its majority
shareholding in LCH Group
London Stock Exchange Group plc ("LSEG") announces that it is in
the process of acquiring further shares in LCH Group Holdings
Limited ("LCH"), which will increase its majority ownership of this
valuable strategic business.
LSEG has entered into agreements with certain minority
shareholders of LCH to acquire up to a further 15.1% of LCH's share
capital which is expected to take its majority ownership to over
80%, subject to the pre-emption process contained within LCH's
Articles of Association (the "Acquisitions"). The total cash
consideration payable by LSEG will be up to a maximum of EUR438m
(GBP384m)*. The Acquisitions will be funded from cash and existing
debt facilities at closing and will be accretive to earnings
following completion. Subject to regulatory non-objection, the
Acquisitions are expected to close before the end of 2018.
The Acquisitions follow on from previous minority acquisitions
by LSEG in late 2017 and early 2018, consistent with LSEG's
strategy of increasing its majority ownership while re-affirming
its commitment to LCH's customer partnership model with 14 minority
shareholders remaining. The following LCH shareholders are selling
shares but will retain minority shareholdings in LCH: Bank of
America Merrill Lynch, Barclays, JP Morgan, Morgan Stanley and
Societe Generale. The following LCH shareholders are selling their
entire stakes in LCH: Borsa Istanbul, CFT & Viel & Cie,
Commerzbank, Deutsche Bank, Nasdaq and Nomura.
* For reference, LCH's profit after tax was EUR158m in 2017 and
it has gross assets (net of balances with clearing members) of
EUR1,625m.
Enquiries
London Stock Exchange Group plc
Gavin Sullivan / Lucie Holloway / Ramesh +44 20 7797 1222
Chhabra (Media) newsroom@lseg.com
Paul Froud (Investors) +44 20 7797 3322
Notes to editors
LCH is a group of leading global multi-asset clearing houses
that provides proven risk management capabilities across a range of
asset classes. LCH operates clearing houses around the world, with
clearing houses incorporated in the UK, France and the United
States with additional offices in the Asia Pacific region. It
offers clearing services across asset classes including OTC and
listed rates; CDS and FX; fixed income; commodities; cash equities
and equity derivatives. LCH also serves the non-cleared derivatives
market through LCH SwapAgent. LCH is majority owned by London Stock
Exchange Group (LSE.L), an international markets infrastructure
business. Marshall Bailey OBE is Chairman of LCH Group and Daniel
Maguire is CEO, LCH Group.
Important information:
This announcement may include statements that are, or may be
deemed to be, "forward-looking statements". These forward-looking
statements involve known and unknown risks and uncertainties, many
of which are beyond LSEG's control and all of which are based on
its respective directors' current beliefs and expectations about
future events. These forward-looking statements may be identified
by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates",
"expects", "intends", "may", "will" or "should" or, in each case,
their negative or other variations or comparable terminology, or by
discussions of strategy, plans, objectives, goals, future events or
intentions. Forward-looking statements may and often do differ
materially from actual results. Any forward-looking statements
reflect LSEG's current view with respect to future events and are
subject to risks relating to future events and other risks,
uncertainties and assumptions relating to LSEG's business, results
of operations, financial position, liquidity, prospects, growth and
strategies. Forward-looking statements speak only as of the date of
this announcement and cannot be relied upon as a guide to future
performance. LSEG expressly disclaims any obligation or undertaking
to update, review or revise any forward-looking statement contained
in this announcement whether as a result of new information, future
developments or otherwise, unless required to do so by applicable
law or regulation.
No statement in this announcement is intended to be a profit
forecast and no statement in this announcement should be
interpreted to mean that earnings per LSEG ordinary share for the
current or future financial years would necessarily match or exceed
the historical published earnings per LSEG ordinary share.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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