Euronext announces closing of the share swap of its current 2.3% stake in LCH Group for an 11.1% stake in LCH SA and becomes minority shareholder of LCH SA. This follows the announcements of 8 August 2017 and 1 November 2017.

On 31 October 2017 Euronext entered into definitive agreements to swap its current 2.3% stake in LCH Group for an 11.1% stake in LCH SA. This transaction has now been approved by the competent authorities and completed today. It will strengthen the long-standing relationship between Euronext and LCH SA and cement the strategic future of LCH SA.

Euronext will remain represented at the Board of Directors of LCH SA. Euronext will have certain minority protection rights connected with its new shareholding in LCH SA, including a pre-emption right in circumstances where LCH Group decides to sell more than 50% of the shares of LCH SA. The pre-emption right involves a right of first offer and subject to certain conditions, a matching right. In addition, LCH Group has a pre-emption right over a transfer of shares by Euronext and the ability to buy back Euronext’s shares in certain circumstances where the derivatives agreement is terminated.

As a consequence of the closing of the share swap, Euronext will record a gross capital gain of €40.6m in exceptional financial income, estimated at €38.4m after tax. This capital gain will be accounted for in the 2017 fiscal year and will be taken into account for the computation of 2017 dividend.

Source: Euronext