Shares in London Stock Exchange (LSE) reached an all-time high after Hong Kong Exchanges and Clearing (HKEX) announced it was eyeing a bid for the bourse, but on the condition that plans for the acquisition of Refinitiv were dropped.
The bid values LSE at 8,361p a share, based on HKEX’s undisturbed share price, representing a 22.9 per cent premium to LSE’s closing price the day prior to the announcement. LSE shareholders would receive 2,045p in cash and 2.495 newly issued HKEX shares.
LSE said it was considering the offer and would make a further announcement in due course, but that it was committed to its proposed acquisition of Refinitiv, which was announced in August.
HKEX said the deal could “elevate the UK’s role in capturing the significant growth opportunities presented by mainland China’s continuing internationalisation” and the emergence of the renminbi as a global reserve currency.
It is not the first time that the Hong Kong group has made a play for one of London’s major financial institutions, after it acquired the London Metals Exchange in 2012.
