Boston-based Battery Ventures and the New York and London-based private equity firm The Blackstone Group will subscribe for approximately 7.7 million new ordinary shares, under the placing and open offer. Following completion of the proposals, Battery and Blackstone, together with parties deemed to be acting in concert with them, will hold in aggregate 7,772,770 ordinary shares, representing 29.4% of the enlarged issued ordinary share capital.
In addition, resolutions were approved to (i) grant the investors a warrant to subscribe for further ordinary shares at £12 per share which may increase their shareholding to up to 40 per cent of the share capital of the company; (ii) authorise the Board to implement employee share incentive schemes and (iii) adopt new Articles of Association. Dr Richard Sandor and Mr Scott Tobin will join the LIFFE Board as non-executive directors.
The above is subject to completion, expected to take place later this week, of (i) the open offer and (ii) the placing.
LIFFE's Chairman, Brian Williamson, said: "The result of the EGM is strong affirmation of our strategy. The very positive support of our new investors and our existing shareholders heralds a new chapter for LIFFE. We are now able to forge ahead with our plans to develop further our existing exchange business and fully realise the potential of our technology assets. "
Chinh Chu, Senior Managing Director of The Blackstone Group commented, "Blackstone and Battery are very pleased to be shareholders of and partners with LIFFE. We believe that LIFFE is well positioned to capitalise on the core attractive business fundamentals and the growing trend of converting conventional exchanges to electronic trading platforms."
