Danish regulator approves Euronext’s acquisition of VP Securities

Maria Nikolova

The approval by the Danish FSA that was the only condition to complete the transaction.

Euronext NV (EPA:ENX) today announces it has obtained the clearance from the Danish Financial Supervisory Authority to acquire up to 100% of VP Securities A/S.

Euronext explains that the regulatory approval by the Danish FSA that was the only condition to complete the transaction. The Exchange has already secured strong support from existing shareholders of VP Securities with shareholders representing 90.68% of the total shares having already accepted Euronext’s offer as of today.

Euronext’s tag along offer to acquire the remaining shares in VP Securities will remain open until August 31, 2020. According to the terms of the Euronext’s tag along offer to the minority shareholders of VP Securities, shareholders having accepted the Euronext’s offer will receive settlement on or around August 3, 2020. Any other shareholders and shareholders with specific rights, accepting Euronext offer, before August 31, 2020, which is the latest date to accept Euronext’s offer, will receive payment on or around September 10, 2020.

Following such settlements, Euronext intends to initiate a compulsory acquisition procedure to acquire the remaining shares not already tendered in accordance with the rules of the Danish Companies Act.

As FinanceFeeds reported in April, Euronext announced entry into definitive agreements to acquire approximately 70% of the shares of Danish Central Securities Depository VP Securities from its existing owners, the Danish Central Bank and four major Danish financial institutions, Danske Bank, Nykredit, Nordea and Jyske Bank.

The price offered for 100% of the shares is DKK1.12 billion.

Established in 1980 and headquartered in Copenhagen, VP Securities is fully integrated into the European post-trade framework. The company was the first Nordic CSD to be granted a CSDR license and to join the European Central Bank’s Target 2 Securities (T2S) settlement system. VP Securities provides national issuers with core CSD services as well as value-added services to the ecosystem such as investor relations tools and sub-custody services. In 2019, the company generated DKK 426 million of revenue and generated an EBITDA of DKK 125 million.

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