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.