22 August 2017
Find out more

Nyse Euronext gets EUR399m from LCH.Clearnet stock sale

30 July 2007  |  5181 views  |  0 zeroes

Stock exchange operator Nyse Euronext says it will receive EUR399 million from the sale of shares in UK clearing house LCH.Clearnet.

The London clearing house said in February that it had reached an agreement in principle to buy out pan-European exchange Euronext - its largest shareholder. In March Nyse Euronext said it planned to cut its holding in LCH.Clearnet from 41.5% to just five per cent.

LCH.Clearnet has now redeemed all outstanding convertible preference shares held by Nyse Euronext at a value of EUR199 million. The clearing house also repurchased 20 million ordinary shares held by Nyse Euronext for EUR10 per share, which equals the market value of the shares when issued in December 2003.

Under the terms of the agreement, LCH.Clearnet will also buy back an additional 6.2 million ordinary shares from Nyse Euronext for EUR61.8 million by April 2008.

Following the second repurchase, Nyse Euronext will retain a five per cent stake in LCH.Clearnet and will have the right to appoint one director to the board.

Details of the buy-out follow last week's news that US market operator IntercontinentalExchange (ICE) is terminating its existing clearing agreements with LCH.Clearnet and establishing its own clearing operation in Europe.

The US exchange has also appointed LCH.Clearnet's Paul Swann as president of its European clearing unit. Swann has been at London clearing house for 20 years,where he has held various positions including managing director, group risk and managing director, change.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

ICE to establish London clearing house

ICE to establish London clearing house

25 July 2007  |  9417 views  |  0 comments
LCH.Clearnet to buy out Euronext

LCH.Clearnet to buy out Euronext

14 February 2007  |  5734 views  |  0 comments
Euronext set to sell LCH.Clearnet stake

Euronext set to sell LCH.Clearnet stake

03 November 2006  |  8477 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comdownload the paper nowvisit www.vasco.com

Who is commenting?

A Finextra member Finextra Member Commented on: Real-time payments in...
A Finextra member Finextra Member Commented on: Barclays uses sensors...

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
11892 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
10304 views comments | 22 tweets | 31 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
9912 views 0 | 5 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
9622 views comments | 10 tweets | 8 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
9597 views comments | 19 tweets | 23 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job