Reuters – September 12, 2019
HONG KONG (Reuters) – Shares of Hong Kong Exchanges and Clearing Ltd (HKEX) (0388.HK) were set to fall 3.3% on Thursday after the bourse unveiled a $39 billion takeover approach to the London Stock Exchange Plc (LSE) (LSE L) on Wednesday.
HKEX stocks were set to open at HK$238, compared with a 0.5% gain in benchmark Hang Seng Index (.HSI).
The proposed deal is aimed at creating a combined group better able to compete with U.S. rivals such as Intercontinental Exchange Inc (ICE.N) and CME Group inc (CME.O). It is contingent on LSE abandoning a deal to acquire financial information provider Refinitiv.
HKEX, whose main shareholder is the Hong Kong government, said its 31.6 billion pound ($38.97 billion) cash-and-share transaction proposal represented a 22.9% premium to the LSE’s closing stock price on Tuesday of 8,361 pence.
Hong Kong Exchanges and Clearing Ltd 38.0
Reporting by Donny Kwok; Editing by Kim Coghill