HKEx inks loan deal to fund bid for LME
Source: Bloomberg News |
June 27, 2012, Wednesday
|
Print Edition
Print Edition
HONG Kong Exchanges & Clearing Ltd has signed a 543 million-pound (US$848 million) loan which it will use to help finance its bid for the London Metal Exchange.
The facility, which matures in June 2013, pays a margin over the London interbank offered rate of 65 basis points for the first 180 days, rising to 85 basis points thereafter, according to data compiled by Bloomberg News. Deutsche Bank AG, HSBC Holdings Plc and UBS AG provided the debt and Deutsche Bank acted as the facility agent.
HKEx's US$2.2 billion bid for the LME values the world's largest trading venue for industrial metals at 181 times earnings, making it the most expensive bourse acquisition exceeding US$1 billion on record, according to the data. The deal is seen as a way for the LME to expand into China, the world's largest buyer of metals.
The offer of 107.6 pounds a share, or 180 times LME's 2011 net income, requires approvals from LME shareholders and the UK Financial Services Authority. It doesn't need shareholder consent in Hong Kong.
HKEx said in a statement earlier this month that it will finance the acquisition from "existing cash resources and new bank facilities."
The facility, which matures in June 2013, pays a margin over the London interbank offered rate of 65 basis points for the first 180 days, rising to 85 basis points thereafter, according to data compiled by Bloomberg News. Deutsche Bank AG, HSBC Holdings Plc and UBS AG provided the debt and Deutsche Bank acted as the facility agent.
HKEx's US$2.2 billion bid for the LME values the world's largest trading venue for industrial metals at 181 times earnings, making it the most expensive bourse acquisition exceeding US$1 billion on record, according to the data. The deal is seen as a way for the LME to expand into China, the world's largest buyer of metals.
The offer of 107.6 pounds a share, or 180 times LME's 2011 net income, requires approvals from LME shareholders and the UK Financial Services Authority. It doesn't need shareholder consent in Hong Kong.
HKEx said in a statement earlier this month that it will finance the acquisition from "existing cash resources and new bank facilities."
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