Business Essentials for Professionals


Refinitiv’s Acquisition Offer Of LSE Approved By The Former’s Shareholders

Refinitiv’s Acquisition Offer Of LSE Approved By The Former’s Shareholders
The proposal to be acquired by Refinitiv in a deal that is worth $27 billion was presented to be voted by the shareholders of the London Stock Exchange Group plc. The results of the General Meeting held earlier on Tuesday showed that the vast majority of LSEG shareholders voted in favour of the LSEG being taken over by Refinitivm the LSEG said.
Earlier the proposal for acquisition was passed by the Board of LSEG.
This approval of the deal by the shareholders of the LSEG brings down on the major hurdles to the acquisition deal getting completes.
However apart from the green signal to the deal by the LSEG shareholders, the final completion of the deal is also dependent on the two companies obtaining a nod from the various relevant antitrust and regulatory bodies and the completion of the relevant processes.
The successful completion of the acquisition is also dependent on the FCA and London Stock Exchange accepting the re admission of the enlarged voting ordinary share capital of LSEG Plc to the premium listing segment of the Official List as well as to trading on London Stock Exchange’s main market for listed securities because of the fact that the deal has been categorized as a Reverse Takeover of LSEG Plc under the Listing Rules of the FCA. shortly Before the completion of the deal, LSEG plc expects to publish a prospectus in relation to Admission shortly.
All the panning of the integration of the two companies are moving as per schedule, according to the LSEG and the acquisition is currently on tract to be completed by the companies by the second half of 2020.
The deal and the LSEG agreeing to get acquired by Refinitiv were announced on August 1 this year. The deal has been termed as a transformational deal by the LSEG both strategically and financially. After the completion of the deal, the new entity that will have a global presence will be headquartered and domiciled in the UK with a premium listing in London.
This is an all-share deal for a total enterprise value of approximately of $27 billion.
However the deal has not been an easy one for Refinitiv as the Hong Kong Exchanges and Clearing Limited (HKEX) had also planned to make a bid for the LSEG. Later in October this year, that bid plan was retracted. While retracting the plans, the HKEX had said that it does not anymore intend to make any offer of acquisition for the LSEG.
With respect to the issue of being acquired, the LSEG had always stressed on its commitment towards Refinitiv, which is a firm that provides data, analytics, trading, and risk assessment services. The LSEG had said in après statement in September 13, this year that since the offer of the deal from Refinitiv, the share price of LSEG had shot up by as much as 29 per cent which was an increase of £5.8 billion in absolute value terms.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc