Shareholders of LCH.Clearnet have approved the much anticipated financial restructuring of the clearing house, which sees the end of Euroclears 15.8% stake.
At the Companys Annual General Meeting yesterday, shareholders voted overwhelmingly in favour of approving the proposed voluntary redemption of up to 33,300,000 shares at a price of 10 a share as announced on 29 September 2009, with over 97% of votes cast in favour of the transaction.
The restructuring also sees the end of the of Euroclears 15.8% stake in the clearing house.
In an earlier statement from LCH.Clearnet, the clearing house will be owned predominantly by users of its services and exchanges which have a clearing relationship with the Company. The increased proportional shareholding of key users will enable LCH.Clearnet to work more closely with its customers, in order to capitalise on opportunities for clearing new markets, and will make it easier to counter competitive pressures by reducing fees.
Pierre Francotte, Euroclear Chief Executive Officer, stated: Euroclear currently intends to redeem its 15.8% stake in LCH.Clearnet. Euroclear remains committed to delivering greater post-trade efficiencies to mutual clients by ensuring seamless interaction between clearing and settlement.
Commenting on the redemption Chris Tupker, Chairman, LCH.Clearnet said: It is essential we are positioned to respond swiftly to the changing market environment by offering both lower fees and innovative services. The voluntary redemption is intended to give shareholders who will not benefit from reduced fees the opportunity to sell some or all of their shareholding in the Company.
Subject to the satisfaction of the remaining conditions the proposed voluntary redemption is expected to take place on 5 November 2009, with settlement of cash consideration within 14 days thereafter.