The pan-European market infrastructure Euronext today announced it is selling its of its 11.1% stake in LCH SA to LCH Group Holdings Limited.
According to the official announcement, the deal is for €111 million and it is expected to close in early July 2023.
Netherlands-headuartered company further noted that as a result there will be a capital gain of €40 million, exempt from tax, in its third quarter results.
Euronext also emphasized that its holdings in LCH SA were recorded at a carrying amount of €70.6 million as of the conclusion of 2022.
The exchange group completed the acquisition of LCH SA in December 2017 through a share swap arrangement, wherein Euronext exchanged its 2.3% stake in LCH Group for an 11.1 percent stake in LCH SA.
Recently, LCH Group exercised its buyback option for the 11.1% stake held by Euronext in LCH SA, resulting in the latest divestment. This transaction led to the early termination of the existing derivatives clearing agreement between Euronext and LCH SA, which had been announced in mid-January.
The company stated:
Euronext and LCH SA are committed to working together to ensure an orderly migration of clearing flows from LCH SA to Euronext Clearing.
