LCH.Clearnet, the leading independent clearing house group, has successfully completed the voluntary share redemption announced on 29 September 2009. Large users, each of which contributes more than 1% towards Group clearing fees and which together represent, in aggregate, over 80% of Group clearing revenues, have increased their total shareholding to 63% from 37%.
As a result of the redemption, LCH.Clearnet is owned 83% by users of its services and 17% by exchanges which have a clearing relationship with LCH.Clearnet. 65 shareholders, including Euroclear Bank SA/NV, have had their shareholding in LCH.Clearnet either redeemed in its entirety or significantly reduced. The total number of shareholders is now 105.
A. Chris Tupker, Chairman, LCH.Clearnet commented: “The realignment of our shareholder base facilitates our cooperating with our large users to deliver more cost effective, successful, long-term clearing solutions. We shall be better placed to respond to competitive pressures by reducing fees and to develop further groundbreaking clearing solutions for both the over-the-counter and exchange traded markets.”
The redemption was slightly oversubscribed, with LCH.Clearnet receiving aggregate redemption elections exceeding the maximum number of 33,300,000 Redemption Shares by 2,403,005 shares (7.2%). LCH.Clearnet therefore redeemed 33,299,973 shares at a total cost of €332,999,730 and the scale back principles (as set out in the terms and conditions included in the circular to shareholders dated 29 September 2009) were applied.
The settlement of the cash consideration for the redemption and payment of the dividend as announced on 29 September 2009 is expected to take place by 19 November 2009.