Hong Kong Exchanges and Clearing Limited (HKEX) has made a proposal to the board of the London Stock Exchange Group (LSE) to merge both companies valuing the LSE at about £29.6 billion ($36.6 billion), CNBC reported.
The deal is said to be funded by a combination of existing cash and a new credit facility, the HKEX said.
This proposal comes after the LSE agreed to a £22 billion ($27 billion) all-share deal to take control of financial data firm Refinitiv. The company said this move would transform it into a rival to Michael Bloomberg’s financial news and data business, but UK-headquartered.
Providing further detail on the potential deal, HKEX proposed offering £20.45 a share in cash, as well as 2.495 of newly issued HKEX shares. However, it cautioned the market that this should be considered as an announcement to make a possible offer and is not confirmation of a firm intention to bid.
The statement from HKEX said a further announcement will be made “as and when appropriate.”
HKEX is already the owner and operator of the London Metal Exchange (LME), the world’s largest market in options and futures contracts on base and other metals.
LSE shares rose by 8.5% afterwards, before giving up some of the initial gainsю