London Stock Exchange Group Waives Lock-up, Allowing £1.5B Share Sale

The London Stock Exchange Group (LSEG) has agreed to waive lock-up arrangements, allowing a consortium led by Blackstone Inc. to sell approximately £1.5 billion worth of LSEG shares to institutional investors, marking a significant shift in ownership structure and potentially impacting the company's future strategy and direction." This description focuses on the primary topic of the article (the sale of LSEG shares), the main entities involved (LSEG, Blackstone Inc., and the consortium), the context of the Refinitiv transaction, and the significant action of the share sale and its potential implications. The description also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content, such as the amount of shares being sold and the potential impact on LSEG's future direction.

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Nitish Verma
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London Stock Exchange Group Waives Lock-up, Allowing £1.5B Share Sale

London Stock Exchange Group Waives Lock-up, Allowing £1.5B Share Sale

The London Stock Exchange Group (LSEG) has agreed to waive lock-up arrangements, allowing a consortium led by Blackstone Inc. and including Thomson Reuters to sell approximately £1.5 billion ($1.9 billion) worth of LSEG shares to institutional investors. The sale represents around 3.3% of LSEG's share capital.

Why this matters: This significant shift in ownership structure may have implications for the London Stock Exchange Group's future strategy and direction, potentially affecting the global financial landscape. As a major player in the financial industry, LSEG's changes in ownership and leadership can have far-reaching consequences for investors, traders, and the overall economy.

The consortium, BCP York Holdings Delaware LP, currently holds 26.7 million shares, equivalent to a 5.0% economic and voting interest in LSEG. Following the successful completion of the placing, the consortium will no longer hold an interest in LSEG, except for 9.4 million shares subject to call options.

LSEG has agreed to waive the lock-up arrangements contained in the relationship agreement entered into upon the completion of the Refinitiv transaction in 2021, when LSEG acquired the data services firm for USD27 billion. The company will not receive any proceeds from the placing.

The sale marks the consortium's exit from LSEG, and the relationship agreement will terminate upon completion of the placing. The shares in LSEG closed marginally higher at 9,096.00 pence on Tuesday.

The consortium includes entities owned by Blackstone Inc., Canada Pension Plan Investment Board, GIC Special Investments Pte Ltd, and other co-investors. The sale will be executed through a placing to institutional investors, with the price per share and final number of shares to be determined by an accelerated bookbuilding process.

The bookbuilding period will commence immediately following this announcement and may close at any time on short notice. The results of the placing will be announced as soon as practicable thereafter.

The consortium inherited the stake in LSEG when the company bought data services firm Refinitiv for $27 billion in 2021. The decision to sell its shares marks an exit from its stake in LSEG.

The sale of LSEG shares by the Blackstone-led consortium signifies a major shift in the ownership structure of the London Stock Exchange Group. The waiver of lock-up arrangements and the subsequent share placing allows the consortium to monetize a significant portion of its stake, acquired through the Refinitiv transaction. As LSEG moves forward without the consortium's involvement, the market will closely watch for any potential implications on the company's strategy and future direction.

Key Takeaways

  • LSEG waives lock-up arrangements, allowing Blackstone-led consortium to sell £1.5bn worth of shares.
  • The sale represents 3.3% of LSEG's share capital and marks the consortium's exit from the company.
  • The consortium inherited the stake in LSEG through the Refinitiv acquisition in 2021.
  • The sale will be executed through a placing to institutional investors via an accelerated bookbuilding process.
  • The transaction may have implications for LSEG's future strategy and direction.