Safety in numbers

9 October 2020 By Lisa Jucca Follow @LJucca

The pan-European exchange has seized Milan’s bourse with a 4.3 bln euro cash bid. The chunky price reflects Borsa’s scarcity value. By teaming up with investors, including an arm of the government, CDP, Euronext hopes to avoid political landmines and lessen the financial pain.

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The London Stock Exchange Group said on Oct. 9 it had agreed to sell Borsa Italiana to Euronext for 4.325 billion euros in cash, plus an additional amount reflecting cash generation at completion.

LSE said the sale was conditional to clearing its $27 billion acquisition of data provider Refinitiv.

Euronext said in a separate statement the acquisition of Borsa Italiana would generate 60 million euros of annual pre-tax synergies, of which 45 million euros are derived from cost savings.

The deal envisages Italian state investor CDP Equity and bank Intesa Sanpaolo acquiring shares, giving them 7.3% and 1.3% of Euronext, respectively.

The deal will be financed through 300 million euros of existing cash, 1.8 billion euros of new debt and a 2.4 billion euro capital increase, including the 700 million euros from CDP Equity and Intesa Sanpaolo.

Context News

The London Stock Exchange Group said on Oct. 9 it had agreed to sell Borsa Italiana to Euronext for 4.325 billion euros in cash, plus an additional amount reflecting cash generation at completion.

LSE said the sale was conditional to clearing its $27 billion acquisition of data provider Refinitiv.

Euronext said in a separate statement the acquisition of Borsa Italiana would generate 60 million euros of annual pre-tax synergies, of which 45 million euros are derived from cost savings.

The deal envisages Italian state investor CDP Equity and bank Intesa Sanpaolo acquiring shares, giving them 7.3% and 1.3% of Euronext, respectively.

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