Euronext, the leading pan-European market infrastructure, today announces it has entered into a definitive agreement for the sale of its 11.1% stake in LCH SA to LCH Group Holdings Limited (“LCH Group”), for an amount of €111 million. The completion of the transaction is expected to occur in early July 2023. The relevant authorities have been notified.
As a result, in Q3 2023 Euronext will incur a non-underlying capital gain of around €40 million, which will be exempt from tax. As a reminder, as of 31 December 2022, Euronext accounted a carrying amount of €70.6 million for its 11.1% stake in LCH SA.
This transaction results from the notification by LCH Group to Euronext of the exercise of its option to buy back Euronext’s 11.1% stake in LCH SA, following the early termination of the existing derivatives clearing agreement between Euronext and LCH SA announced on 16 January 2023.
The price has been defined by an independent expert, in accordance with the pre-agreed terms for the buy back.
Euronext and LCH SA are committed to working together to ensure an orderly migration of clearing flows from LCH SA to Euronext Clearing.
