(Ecofin Agency) - Hong Kong Exchanges and Clearing (HKEX) made an unsolicited offer of $36.6 billion to acquire the London Stock Exchange Group. The Asian company says it will pay both in cash and shares for a total of £83.6 for each LSEG share; this is 22.7% higher than the value of LSE share as at September 11, when the offer was made.
“Bringing HKEX and LSEG together will redefine global capital markets for decades to come. Both businesses have great brands, financial strength and proven growth track records,” HKEX Chief Executive Charles Li (pictured) said.
The HKEX’s offer came weeks after LSE announced it wants to acquire Refinitiv, a financial data analysis services provider. If the offer is approved, HKEX would thus have control not only over the London Stock Exchange, the British financial center which is the second largest for listed African companies but also over a vast financial activity.
LSE is establishing strong partnerships with African financial markets, namely Casablanca (Morocco), Johannesburg (South Africa) and Abidjan (Côte d'Ivoire). In addition, there are hundreds of African or Africa-based companies that are listed on the stock exchange, as well as governments that issue bonds on the market.