ASX receives notice regarding proposed sale of Yieldbroker
ASX has received a Notice of Meeting for a meeting to be held on 22 May 2023 to consider and vote on a proposal to sell 100% of the shares in Yieldbroker Pty Limited to a wholly owned subsidiary of Tradeweb Markets LLC.
The proposed consideration for the sale is A$125m, on a cash-free, debt-free basis and assuming a normalised level of working capital.
The Proposed Transaction has been unanimously recommended to Yieldbroker shareholders by the Yieldbroker board. Approval of Yieldbroker shareholders is being sought to meet certain Yieldbroker constitutional requirements.
ASX owns approximately 43% of Yieldbroker. The remaining shares are owned by a number of domestic and international banks and current and former Yieldbroker employees. The value of ASX’s interest under the terms of the Proposed Transaction is approximately A$55m, after transaction costs. ASX’s current carrying value of its interest in Yieldbroker is approximately A$30m.
The Proposed Transaction is subject to a number of conditions and there is no certainty that it will proceed. If the Proposed Transaction proceeds as outlined above, ASX will recognise a reversal of prior year impairment losses of approximately A$25m after tax. This gain will be classified as a significant item in ASX’s financial reporting framework.
ASX’s participation in the Proposed Transaction is subject to ASX Board approval.