LSE Completes $494.36 million Acquisition of 14.6% LCH Stake

The exchange operator first announced the deal in October of this year.

The London Stock Exchange (LSE) announced on Friday that it has completed the acquisition of an additional 14.6 percent stake in LCH – a clearing house based in London.

The LSE announced the acquisition back in October when it published its third-quarter report for the 2018 fiscal year.

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In that report, the company said that its existing stake in the firm had helped contributed £57 million ($71.62 million) in revenue for its third quarter.

At the same time, the stock exchange operator said that it would be paying a maximum of €438 million ($494.36 million) for another 15 percent in LCH.

That deal has come into fruition almost exactly as the report said it would.

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According to a statement released by the LSE this Friday, the exchange operator will be paying €424.5 million ($479.2 million) for an additional 14.6 percent of the company’s shares.

LSE in Control of LCH

The acquisition, which has also been given the green light by regulators, means that the LSE now controls 82.6 percent of LCH’s shares.

The LSE’s last quarterly report indicated that funding for the acquisition would come from the exchange operator’s cash and existing debt facilities. The company also said back in October that the deal will increase investors’ earnings per share.

From the statement released on Friday, it is unclear who the LSE actually bought the shares in LCH from but, again, the company’s third-quarter report can shed some light on that.

In the report, the LSE said that a number of minority stakeholders would be selling their entire share in the LCH as a result of the acquisition. The company listed Borsa Istanbul, CFT & Viel & Cie, Commerzbank, Deutsche Bank, Nasdaq, and Nomura as the companies it planned to buy out.

On top of this, a number of companies – Bank of America Merrill Lynch, Barclays, JP Morgan, Morgan Stanley, and Societe Generale – sold some of their stake in the LCH.

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