Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — Merger or Acquisition (September 2019)
10 slides from Hong Kong Exchanges & Clearing's merger presentation, Sep 12, 2019
Slide 1: HKEX Investor Presentation: Proposed Combination with LSEG
HKEX INVESTOR PRESENTATION PROPOSED COMBINATION WITH LONDON STOCK EXCHANGE GROUP PLC (“LSEG”) 11 September 2019
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTIONThis presentation has been prepared by Hong Kong Ex
Slide 3: Executive Summary
3 Executive Summary The proposed combination with LSEG represents a highly compelling strategic opportunity to create a global market infrastructure leaderTwo of the world’s premier market infrastructure businesses, HKEX and LSEG would together offer unique potential to enhance and capture global ca
Slide 4: Compelling Strategic Rationale
4 Compelling Strategic Rationale Creation of a World Leading Market Infrastructure GroupWith global footprint, diversified across asset classes, connecting the established financial markets in the West with the emerging financial markets in the East, particularly China Gateway to Mainland ChinaReinf
Slide 5: HKEX Company Overview
5 HKEX Company Overview Overview of HKEX Source: (1)(2)(3) Company informationAs of 10 September 2019Ranked # 1 in IPO funds raised in 6 of the past 10 yearsSegment split based on FY2018. Since April 2019, the Clearing segment is renamed the Post Trade segment as part of the reorganisation to facili
Slide 6: LSEG Company Overview
6 LSEG Company Overview Note: Financials in non-HKD currencies are converted to HKD for illustrative purposes. Rate: £1=HK$9.6865 (at 10 September 2019)Source: Company information (A: annual and interim reports, B: investor relations materials, C: company website), D: BloombergSegment split based on
Slide 7: Combined Business Would Be Competitive, Scaled And Robust
7 Combined Business Would Be Competitive, Scaled And Robust Capital Markets Cash Markets Derivatives Markets Post-Trade Clearing Custody & Settlement Information Services and Technology Index Market Data Technology ORB AIM SwapClearCC&G Monte Titoli IDEM UnaVista RNS SEDOLReal-Time Data HKSCC(Cash)H
Slide 8: Deal Overview – Proposed Key Terms
8 Deal Overview – Proposed Key Terms Based on the closing price of HK$245.20 per HKEX share on 10 September 2019 and a £:HK$ exchange rate of £1=HK$9.6865. Equity value refers to the entire issued and to be issued ordinary share capital of LSEGVWAP since 29 July 2019, the first trading date after th
Slide 9: Transaction Framework and Key Stages
9 Transaction Framework and Key Stages Subject to a 28-day deadline from the “Possible Offer” Announcement, which may be extended with the consent of the Board of LSEG and the Takeover PanelA statement of intention not to make an offer under Rule 2.8 would be issued and HKEX would be required to sto
Slide 10: Conclusion
10 Conclusion The proposed combination with LSEG represents a highly compelling strategicopportunity to create a global market infrastructure leader This would strengthen both the businesses of HKEX and LSEG, better positioning them to innovate across markets and geographies, and offer market partic
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