LSE revised offer for LCH.Clearnet declared wholly unconditional

Source: London Stock Exchange

LCH.Clearnet Group Limited ("LCH.Clearnet") and London Stock Exchange Group plc ("LSEG") today announce that the Revised Offer is wholly unconditional and will complete today.

On 7 March 2013, LCH.Clearnet and LSEG announced a revised recommended cash offer by London Stock Exchange (C) Limited, a wholly owned subsidiary of LSEG, for a majority stake in LCH.Clearnet. The full terms and conditions of the Revised Offer and the procedures for acceptance of the Revised Offer were described in the circular sent to LSEG Shareholders on 8 March 2013, and set out in full in the offer document sent to LCH.Clearnet Shareholders on 11 March 2013.

LCH.Clearnet has now received sufficient irrevocable binding subscription commitments in order to cover the full amount of LCH.Clearnet's Capital Raise and so satisfy the Capital Raise condition. As a result, all conditions of the Revised Offer, including all regulatory conditions, have now been satisfied and LCH.Clearnet and LSEG are pleased to declare the Revised Offer unconditional in all respects, and therefore the Revised Offer will complete today. Settlement shall occur within ten business days from the date of this announcement.

LCH.Clearnet will post the final circular in respect of the Capital Raise today. It is expected that the Capital Raise will be completed in the second quarter of 2013. LCH.Clearnet has included a trading update in their Capital Raise Circular which is set out below:

"Clearing fee revenue for the first three months of 2013 has increased compared with the fourth quarter of 2012, particularly in the key OTC business lines. These increases are in part offset by LCH.Clearnet's profit share arrangements. In a challenging market environment, LCH.Clearnet continues to manage its risk profile. Realised net investment income is down year over year reflecting lower average collateral levels compared to 2012. LCH.Clearnet continues to maintain a focus on cost discipline although operating expenses are up reflecting investments made in 2012 to grow the business and respond to regulatory change.

LCH.Clearnet remains confident of its strategic position in the market, given customer demand and regulatory changes are creating enhanced opportunities for clearing and risk management services globally."

The Enlarged Group is now focussed on the post completion programme to ensure expected synergies are achieved and commercial opportunities are maximised. 

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