Euronext N.V. made an offer to acquire Banque Centrale de Compensation SA from LCH. Clearnet Group Ltd. for €510 million.
January 02, 2017
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Euronext N.V. (ENXTPA:ENX) made an offer to acquire Banque Centrale de Compensation SA from LCH. Clearnet Group Ltd. for €510 million on January 3, 2017. The transaction will be funded through a combination of debt facilities and existing cash. For the six month period ending June 30, 2016, Banque Centrale de Compensation SA (LCH SA) generated €69 million of gross income, and held net assets of €301 million. The proposed sale of LCH SA would be subject to review and approval by the European Commission in connection with the recommended merger of LSEG and Deutsche Börse AG. It would also be conditional on the successful closing of the merger of LSEG and Deutsche Börse AG. The transaction would be conditional upon the receipt of various regulatory and other consents and approvals, the completion of LCH SA's works council consultation process and Euronext shareholder majority approval at an Extraordinary General Meeting to be held in the first quarter of 2017. Euronext has received support to vote in favor of the transaction from reference shareholders who in their entirety comprise 33.36% of the share capital of Euronext. Under the terms of the Reference Shareholder agreement, all Reference Shareholders are obliged to vote in accordance with the recommendation of a two-third majority of Reference Shareholders. The transaction is expected to close towards the end of the second quarter of 2017. The transaction is expected to be double-digit accretive to Euronext’s earnings from the first full year post completion. As on February 15, 2017, the acquisition was unanimously approved by Euronext shareholders.
Katherine Moir, Tim Lewis, Thierry Schoen, Simon Gleeson, Alex Nourry, Nick Mace, Alexander Drysdale, Katy Parkes, Alison Kiernan, Lara Attarzadeh, Zi-Yang Lim and Alistair Woodland of Clifford Chance acted as legal advisor, James Lupton and Pieter-Jan Bouten of Greenhill & Co. International LLP acted as financial advisors and Anthony Cardew of Cardew Group, Lucas van Praag of Fitzroy Communications and Delphine Peyrat-Stricker of Image Sept acted as public relations advisor for LCH. Rothschild Europe B.V. acted as financial advisor, Benjamin Homo, Paul de France and Louis Nayberg of Mayer Brown France acted as legal advisors to Euronext. Philip Richards, Stephen Hewes and Andrew Hutchings of Freshfields acted as legal advisor to London Stock Exchange. Alban Caillemer du Ferrage, Leon N. Ferera, Audrey A. Bontemps, Liam Bonamy, Philippe Goutay, John Ahern, Jonathon Little of Jones Day and Benjamin Homo, Paul de France and Louis Nayberg of Mayer Brown acted as legal advisor to Euronext. JPMorgan Chase & Co. acted as financial advisor to London Stock Exchange Group, parent of LCH Group Holdings Limited.
Euronext N.V. is a pan-European exchange group operating regulated markets in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. Euronext N.V. also operates non-regulated activities in 16 countries across the world. Euronext N.V. is listed in Paris, Amsterdam, Brussels and Lisbon since 2014.
Euronext N.V. is the leading listing and trading venue in Europe with EUR 6.6 trillion combined market capitalization at the end of 2023, close to 1,930 listed companies and the largest liquidity pool in Europe.
Euronext N.V. provides advanced market data services and a range of indices and index solutions, including the AEX, CAC40, BEL 20, ISEQ 20, PSI 20, and OBX, as well as a large set of ESG indices, such as CAC40 ESG or MIB ESG. Euronext N.V.'s proprietary trading platform, Optiq®, offers cutting-edge solutions to both trading and technology clients. Euronext N.V. offers clients innovative corporate and investors services. Euronext N.V. also operates Euronext FX in the United States and in Singapore and two spot FX matching engines in Tokyo and London.