Hong Kong to continue the LSE charming

The Hong Kong Exchanges and Clearing (HKEX) is continuing with its LSE charming in spite of the LSE rejects. The London Stock Exchange Board has rejected the 32 billion pounds offer from the Hong Kong Stock Exchange. According to LSE, it is committed to its own deal, the 27 billion pounds acquisition of data and trading group Refinitiv and with its co-operation with Shanghai Stock Exchange.

HKEX has met several financial authorises in the markets to discuss about the offer and in order to overcome the mentioned political and governance risks related to the HKEX offer.

According to Financial Times, the HKEX has time until the 9th of October if they will continue with the offer.

 

Business Finance

Hong Kong to make rival offer of London Stock Exchange – FT (updated)

The Hong Kong Stock Exchange is making a rival offer of London Stock Exchange, LSE. According to Financial Times, the deal would be worth of 32 billion pounds.

According to the Hong Kong Exchanges & Clearing Ltd CEO Charles Li they considered the offer for months. He says that the combination would be rationale for many reasons and one of them is the assets trading in euros, dollars and renminbi.

– First, LSEG is one of the most well-known, highly respected and successful exchange groups in the world. Based in London, it is a global offshore centre for Eurodollars. Likewise, HKEX is one of the top Asian exchange groups based in Hong Kong, the world’s leading offshore market for Renminbi. A combination of two markets of this size and significance has never been done before and would create a globally-connected exchange group that serves as the leading international platform for financial assets denominated in US dollars, Euro and Renminbi, the CEO Li says in his blog today.

The HKEX has offered 20,45 pounds a share in cash and 2,495 new HKEX shares, which would make a 23 % premium to LSE´s closing price yesterday, the Financial Times says. The shares of LSE are trading up about 8 % to 7368 pounds in London.

 

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LSE and Refinitiv – all share transaction

The London Stock Exchange (LSE) has today announced that it has agreed to acquire the Refinitiv business in all share transaction. The deal, the economic value of 27 billion dollars, will form a new global data and analytics company with combined annual revenue of 6 billion pounds.

The Refinitiv shareholders will get 37 % of the economic interest in LSEG and less than 30 % of the total coming rights of LSEG. The company will has its headquarter in London and will remain in compliance with the UK Corporate Governance Code.

The Stock Exchange says that the annual growth rate for the first three years would be 5-7 % annually and would mean also synergies in the cost savings.

The shareholder meeting of the transactions is expected to before the year end and the completion of the deal is expected to occur during the second half of 2020.

The shares of London Stock Exchange rose 6 % to 7024 pounds in today’s trading.

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LSE confirms the Refinitiv talks

The London Stock Exchange (LSE) confirms the merger talks with Refinitiv. According to the company press release on Saturday, the LSE says that it is in talks with Refinitiv Shareholders about the possible acquisition of Refinitiv.

There can be no certainty that discussions between the parties will progress or that a transaction will be forthcoming, the LSE says.

The Stock Exchange says that the total enterprise value of the deal would be about 27 billion dollars and it would mean that new LSE shares would be issued. The parties estimate that the transaction would mean that Refinitiv Shareholders would get less of 30 % of the total voting rights of LSEG.

– LSEG believes that a potential transaction would offer significant customer benefits across the full range of LSEG’s businesses. The combined business would create a leading, UK headquartered, global financial market infrastructure provider with significant multi-asset capital markets capabilities, a leading data and analytics business and a broad post-trade offering, well positioned for future growth in an evolving landscape, the stock exchange says.

The Stock Exchanges reminds that the transaction remain a subject to the LSEG Board and that there is no certainty that the transaction would happen.

Business Finance

The London Stock Exchange and Refinitiv in merger talks – FT

The London Stock Exchange Group is in merger talks with Refinitiv, writes Financial Times today. According to the newspaper, the deal would create a global exchanges and data powerhouse.

According to FT, the deal is to be announced as soon as next week. Refinitiv, former part of Thomson Reuters, is 55 % owned by private equity company Blackstone. The deal in January 2018 valued the total Financial & Risk Unit (now called Refinitiv) at 20 billion dollars.

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