London Stock Exchange Group Plc (LON:LSE) today scheduled a general meeting where the proposed sale of Borsa Italiana to Euronext will be put to vote.
As FX News Group has reported, LSEG plc announced on October 9, 2020 that it had agreed to sell its entire shareholding in London Stock Exchange Group Holding Italia S.p.A. to Euronext N.V. The transaction constitutes a related party transaction for LSEG plc under the Listing Rules and is conditional upon, inter alia, the approval of LSEG shareholders.
LSEG plc has convened a general meeting of its shareholders at 10.30 a.m. on November 3, 2020 at 10 Paternoster Square, London EC4M 7LS. The purpose of the meeting is to consider and approve the transaction.
According to LSEG, the principal benefit of the Borsa Italiana deal is to facilitate the completion of the Refinitiv transaction. The divestment, which represents an enterprise valuation multiple of 16.7x 2019 adjusted EBITDA, allows LSEG to achieve an attractive valuation for Borsa Italiana. The Board believes that the overall strategic rationale for, and financial benefits of, the Refinitiv Transaction remain compelling notwithstanding the divestment of Borsa Italiana.
LSEG is expected to receive proceeds in cash on closing (before deductions of applicable taxes and other transaction related costs) of €4.325 billion plus an additional amount reflecting cash generation to completion.
LSEG intends to use the net proceeds from the Borsa Italiana transaction to repay indebtedness related to the Refinitiv transaction and for general corporate purposes. This will allow LSEG to reduce leverage following completion of the Refinitiv transaction, bringing LSEG closer to its target net debt to adjusted EBITDA ratio of 1.0-2.0x within a desirable timeframe.