The second largest stock operator worldwide - Hong Kong Exchanges & Clearing Ltd. is supposed to hold additional issue of shares that would amount to 7.75 bln. Hong Kong dollars or 1 bln. US dollars. In such a way the stock exchange will finance the takeover of London Metal Exchange (LME) by 1.39 bln. pounds or 2.2 bln. dollars, as informed by the “Market Leader”.
This will be the first additional issue since IPO in 2000. During these years capitalization of Hong Kong Exchanges has increased by 3128 percent. At the end of trading session on November 30 price per share was 4.21 percent more than share placing, which amounted to 118 Hong Kong dollars.
Hong Kong government has already expressed its readiness to purchase 3.81 mln. shares for 450 mln. Hong Kong dollars, so that its holding of shares remains at the point of 5.8 percent.
Last Thursday agreement between LME and Hong Kong Exchanges was approved by Financial Services Authority of Great Britain. Final court hearings of the takeover will be held on December 5. Provided that the agreement is approved in court, it will be closed on December 6.
