Shareholders green light 60 percent stake move.
The London Stock Exchange Group (LSE) has received preliminary shareholder approval from LCH.Clearnet for its takeover bid proposed last month.
The LSE's offer from 9 March 2012 received a majority approval from 60 percent of LCH.Clearnet's shareholders, and an overwhelming majority of proxy votes. Although the acceptance condition has been met, however, the offer will be extended until 13 April 2012 to allow remaining shareholders to participate.
Under the terms of the offer, the LSE will assume ownership of 60 percent of shares in LCH.Clearnet, in a deal valued at around £387 million (approximately $621 million).
The incorporation of a clearing house is being seen as a crucial aspect of strategy for exchanges moving forward, given regulatory reform of over-the-counter markets, and central clearing of standardized derivatives being mandated as a result. Recently, NYSE Euronext announced that it would be terminating elements of its clearing relationship with LCH.Clearnet, instead establishing its own clearing arm.
The completion of the deal is expected by the fourth quarter of 2012.
More from Sell Side Technology
Updating your subscription status
Winner's Announced: Sell-Side Technology Awards 2015
The winners of the 3rd annual Sell-Side Technology Awards 2015 were announced in New York on April 21, recognizing the leading third-party vendors serving the sell side in their area of expertise, through an auditable and transparent methodology. To view the winners across the 28 categories click here.
The catalyst for change in client reporting is a more empowered, digitally aware consumer. Excellence of service delivery will be key to investment managers...
Without a consistent source of data and limited functionalities in existing systems, firms are unable to perform tasks that are becoming increasingly important...