HK bourse seeks $1b for LME takeover
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HONG KONG, Nov 30 AFP
November 30 2012, 10:10PM
The Hong Kong Stock Exchange says it will sell $US1 billion ($A963 million) in new shares to fund a takeover of the London Metal Exchange, a day after the deal was approval by British regulators.
The HKEx, the holding company of Hong Kong's bourse, said on Friday it plans to raise up to $HK7.75 billion ($A959 million) by selling 65.7 million new shares priced at $HK118 each, it said in a statement.
HKEx "intends to use the net proceeds to partly fund" the purchase of the 135-year-old LME, the world's largest exchange trading non-ferrous metals, including copper and aluminium. The deal is valued at $2.15 billion.
"We are looking forward to finally consummating our acquisition of the LME and to realising the benefits of the acquisition for our shareholders and other stakeholders," HKEx chief executive Charles Li said in the statement.
The LME said on Thursday that Britain's Financial Services Authority has approved the takeover bid, and expected the deal to become effective around December 6 after a court hearing to finalise the transaction.
HKEx has said its purchase of the LME will strengthen its role as a bridge between China and international markets.