LCH.Clearnet shareholders approve buyout
15 October 2009 | 6910 views | 0
The future of LCH.Clearnet finally appears to be settled after shareholders in the London-based clearing house voted overwhelmingly in favour of a buyout proposal.
At the company's AGM yesterday, 97% of votes cast were in favour of approving the proposed voluntary redemption of up to 33,300,000 shares at a price of EUR10 a piece. A dividend of EUR1.50 per share will also be paid to all stockholders.
LCH.Clearnet's largest single shareholder Euroclear had already agreed to offload its 15.8% stake when the proposal was made last month.
By giving its users a greater stake in the company, LCH.Clearnet appears to have ended the long running saga over its ownership, placating the consortium of 11 banks and interdealer broker Icap which launched a EUR11 a share bid in May.
Chris Tupker, chairman, LCH.Clearnet, says: "We are pleased the proposed redemption has been approved by our shareholders. We believe that the implementation of the redemption will place the company on a strong footing for the future. A further alignment of users and owners should enable us to respond better to new clearing opportunities and make it easier to counter competitive pressures by reducing fees."
The proposed voluntary redemption is expected to take place on 5 November, with settlement of cash consideration within 14 days of this date, subject to the satisfaction of the remaining conditions.