Euronext not to make offer for BME

Maria Nikolova

Euronext considers that the financial terms of a potential competing offer would not be compatible with value creation and adequate return on invested capital for its shareholders.

Euronext NV (EPA:ENX) today issued a statement in relation to its plans regarding Bolsas y Mercados Españoles (BME).

Euronext says that it has been reviewing in detail a potential offer for BME. Euronext has analysed all the available facts and data, including market and competitive conditions. After careful consideration, Euronext confirms it does not intend to make an offer for BME.

Euronext explains that it considers that the financial terms of a potential competing offer, despite the significant potential synergies, would not be compatible with value creation and adequate return on invested capital for Euronext shareholders.

Last week, Swiss financial markets infrastructure operator SIX Group AG announced that it received authorisation from the CNMV for its all-cash voluntary tender offer for BME. The total equity value of the deal is approximately EUR 2,793 million or CHF 2,952.76 million. The initial offer price amounted to 34 euros per share but was adjusted by the gross amount of the dividend of 0.60 euros per share paid by BME on December 30, 2019.

The consideration will be further adjusted by the gross amount of an additional dividend of EUR 0.42 per share that BME expects to pay on May 8, 2020, provided that the date when the Offer results are published on the trading bulletins takes place on or later than the ex-dividend date.

SIX’s offer is subject to the minimum acceptance level of at least 50% plus one share of BME’s share capital (which means a total of 41,807,780 shares of BME).

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