Jul 26, 2012 12:03 PM

LME Holdings' Shareholders Approve HKEx Deal


Hong Kong Exchanges and Clearing Ltd. (HKEx) has won shareholder approval for its proposed 1.39 billion pound purchase of the London Metal Exchange (LME).

HKEx said on July 25 that ordinary shareholders of LME Holdings, the parent company of the world’s oldest metal exchange, approved "all the resolutions required in connection with the proposed scheme of arrangement to implement the acquisition."

HKEx Chief Executive Charles Li said its "ability to help the LME grow its business in Asia and beyond provides significant opportunities for both parties and will deliver value for all of our stakeholders."

Martin Abbott, chief executive of LME Holdings and LME, said "the deal with HKEx will secure the LME’s position as the world’s foremost metals trading venue."

The deal still needs approval from Britain’s Financial Services Authority. If this happens, the transaction would be completed by the fourth quarter, HKEx said.

HKEx signed an agreement on June 15 to acquire all the issued and outstanding ordinary shares of LME Holdings for 1.388 billion pounds, or 107.6 pounds per share. The transaction will be conducted in cash through HKEx subsidiary HKEx Investment (UK) Ltd.

The deal will be financed from cash and bank loans of at least 1.1 billion pounds, which would be principally financed by a banking consortium led by the Chinese government's China Development Bank, HKEx said.

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