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BRIEF-Hong Kong Exchanges and Clearing Ltd Proposes Merger With LSE

Published 2019-09-11, 04:53 a/m
Updated 2019-09-11, 05:00 a/m
© Reuters.  BRIEF-Hong Kong Exchanges and Clearing Ltd Proposes Merger With LSE

© Reuters. BRIEF-Hong Kong Exchanges and Clearing Ltd Proposes Merger With LSE

Sept 11 (Reuters) - Hong Kong Exchanges And Clearing Ltd:

* STATEMENT RE POSSIBLE OFFER

* ANNOUNCES THAT IT HAS MADE A PROPOSAL TO BOARD OF LONDON STOCK EXCHANGE GROUP TO COMBINE TWO COMPANIES

* SAYS UNDER PROPOSED TRANSACTION, LSEG SHAREHOLDERS WOULD RECEIVE PER LSEG SHARE: 2,045 PENCE IN CASH, 2.495 NEWLY ISSUED HKEX SHARES

* TERMS OF PROPOSED DEAL WOULD IMPLY VALUE FOR LSE OF ABOUT £29.6 BILLION, IMPLYING ENTERPRISE VALUE OF £31.6 BILLION

* INTENDS TO APPLY FOR SECONDARY LISTING OF HKEX SHARES ON LONDON STOCK EXCHANGE AFTER PROPOSED DEAL CLOSES

* PROPOSED TRANSACTION WOULD BE FINANCED THROUGH A COMBINATION OF EXISTING HKEX CASH RESOURCES AND NEW CREDIT FACILITIES

* SAYS TO CONTINUE DIVIDEND POLICY OF PAYING DIVIDENDS WITH NORMAL TARGET PAY-OUT RATIO OF 90% OF PROFITS OF COMBINED GROUP

* PROPOSED TRANSACTION IMPLIES A VALUE FOR EACH LSEG SHARE OF C. 8,361 PENCE

* IT IS EXPECTED THAT KEY LSEG MANAGEMENT WOULD CONTINUE TO OPERATE LSEG BUSINESSES FOLLOWING PROPOSED DEAL

* HKEX HAS BEGUN CONVERSATIONS WITH CERTAIN REGULATORS IN THE UK AND HONG KONG

* IT IS EXPECTED THAT KEY LSEG MANAGEMENT WOULD PARTICIPATE IN HKEX GROUP MANAGEMENT FOLLOWING PROPOSED DEAL

* SAYS STATEMENT REGARDING POSSIBLE OFFER FOR LSE IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER

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