Hong Kong exchange set to fall 3.3% after $39 billion takeover bid for LSE

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.

FILE PHOTO: The name of Hong Kong Exchanges and Clearing Limited is displayed at the entrance in Hong Kong, China January 24, 2018. REUTERS/Bobby Yip/File Photo

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

  • 0388.HK
  • LSE.L
  • .HSI
  • ICE.N
  • CME.O

Reporting by Donny Kwok; Editing by Kim Coghill

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