Goldman Sachs Consortium Sells Shares in London Stock Exchange Group
In a recent announcement, Goldman Sachs revealed that a consortium consisting of Blackstone and Thomson Reuters has successfully sold off 43.1 million shares in the London Stock Exchange Group (LSEG). This was achieved through a combination of a placing, directed buyback, and the sale of call options.
The consortium, known as the York Entities, also conducted a placing to sell 25.5 million ordinary LSEG shares at a price of 7,950 pence per share. The total value of this transaction amounted to an impressive 2.02 billion pounds ($2.53 billion), representing a slight discount of 3.8% compared to the previous day's closing price of 8,264 pence.
Simultaneously, LSEG itself made an off-market purchase of limited-voting ordinary shares worth 750 million pounds ($938 million) in conjunction with the consortium's placing. The acquisition was executed at a price of 7,894 pence per share, resulting in a discounted rate of 4.5% from the previous day's closing price.
As part of the deal, York Entities has also sold call options over approximately 8.2 million extra voting shares to Barclays Bank, Goldman Sachs, BofA Securities, and Morgan Stanley. These call options represent an economic interest of around 1.5% and a voting interest of 1.6% in LSEG. Furthermore, York Entities plans to sell around 2.7 million additional voting shares to establish an initial hedge for the call option transaction. This will be achieved through a concurrent placing to institutional investors.
Sources: Wall Street Journal
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