The Swiss stock exchange operator SIX to be submitted to the Spanish stock exchanges and financial market infrastructure group Bolsas y Mercados Españoles (“BME”) is a multi-billion dollar takeover offer. The Deal comes to pass, would create the third-largest financial market infrastructure providers in Europe. However, Euronext has expressed an interest.
The takeover offer is according to a communication from the SIX from the Monday from an all Cash transaction was for 100 percent of the share capital of BME. The SIX is willing to pay 34 Euro-per-BME-share. This would be a total price of 2.8 billion euros, or approximately correspond to 3.1 billion Swiss francs.
The SIX is to grab your willing for the Acquisition of the Spanish purse deep in the pocket. The offer of SIX for BME corresponds to the information pursuant to a premium of 47.6 per cent compared to the volume-weighted average share price of BME for the last 6 months and by 33.9 per cent compared to the closing price of 25,40 euros from 15. In November 2019.
changing direction
The planned Acquisition comes somewhat as a surprise. In the middle of August 2019, a SIX-speaker told the news Agency Reuters, that for the SIX “no need”, a stock exchange, to purchase the card and denied so that appropriate reports by the Bloomberg news Agency of an upcoming Takeover.
Bloomberg reported, citing “well-informed circles” that the Swiss stock exchange operator, could keep up according to a European stock exchange, on the look-out, you should take the loss of the EU stock exchange in recognition of longer or exacerbate the Situation. Already at that time, the speech of the Spanish BME, as well as of the Vienna stock exchange.
“We are very satisfied with the protection measures laid down by the Federal Council with a view to the loss of the EU stock market recognition and knowledge of any possible escalation in the equivalence debate,” said the SIX-speaker at the time. The EU had at the end of June in the dispute about the framework agreement with Switzerland, the exchange equivalence of the Swiss stock exchange leakage.
Background of the dispute since 2014, the long negotiations between Switzerland and the EU on an institutional framework agreement. The stock exchange of equivalence is used as a means of pressure. Because the Swiss stock exchange regulation, the EU is not recognised as equivalent, is since then prohibited market participants from the EU, the shares trade on the Swiss stock exchange. The Federal Council had reacted against the measures and the trading of Swiss stocks in the EU should be prohibited.
The decision to launch an offer for the BME, but I have nothing to do with the dispute on the stock exchange of equivalence, said the SIX-Management in a conference call on Monday. Decisive for the change of direction of SIX the large capital could be reserves of the company.
Large financial reserves
The Swiss stock exchange intends to Finance the purchase, namely through existing cash reserves. The financial Arsenal of SIX is likely to be well filled, because in may 2018, the SIX Payment Services to the French payment company Worldline was sold. In return, SIX received a contribution of 27 percent to Worldline.
This exploded in the 2018 fiscal year, the net profit of the SIX to 2.88 billion Swiss francs, after a profit of 207.2 million in the year 2017. In the communication of Monday, SIX speaks of “significant cash and cash equivalents in the balance sheet” and “sufficient unused debt financing capacity”.
For a successful Takeover, the BME must tender to shareholders of SIX but first, a minimum of 50 percent plus one share. In addition, under the transaction, sun, nor the approval or Non-objection of the Spanish market and competition Commission (CNMC) and the Spanish stock market regulator (CNMV), as well as the approval by the Spanish government.
Euronext confirms talks
Also at the BME of the European stock exchange operator Euronext is interested. On Monday, the company confirmed talks with the Spanish competitors about a possible Acquisition. Euronext operates the stock exchanges in Amsterdam, Brussels, Dublin, Lisbon and Paris. According to reports, Euronext is interested in addition on the Italian stock exchange operator Borsa Italiana, if this should be sold by the London Stock Exchange (LSE) in the Wake of the planned 27 billion Dollar Acquisition of the data provider Refinitiv. (Dec/sda)
Created: 18.11.2019, 09:08 PM
