Shareholders of LCH.Clearnet have voted overwhelmingly in
favour of adopting the equity redemption plan proposed by the
clearing house’s board at the end of
The decision brings to an end a year of uncertainty about
the company’s future, which has included takeover
approaches by US clearing firm the Depository Trust and
Clearing Corp and by a consortium of banks led by Icap, the
interdealer broker. The result will be a structure in which
ownership of LCH.Clearnet is aligned more closely with its
customer base than before, but control is kept in Europe and
does not pass to a narrow clique of bulge bracket firms.
A spokesperson for LCH.Clearnet confirmed that 97% of the
shareholders that took part in the vote on October 14 supported
LCH.Clearnet chairman Chris Tupker, who is due to leave by
the end of 2009, said in a statement: "A further alignment of
users and owners should enable us to respond better to new
clearing opportunities and make it easier to counter
competitive pressures by reducing fees."
The clearing house will buy and retire up to 33.3m of its
own shares for €10 a share, in a deal that could total as
much as €444m including a special dividend of €1.50 a
share, worth €111m, paid to all shareholders.
Euroclear, largest of LCH.Clearnet’s 119
shareholders with 15.8%, said as soon as the deal was mooted
that it would surrender all of its 11.7m shares. A further
73.3% of the company is owned by users and 10.9% by
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |