LME Holdings Limited, the parent company of The London Metal Exchange Limited (LME Limited), has announced that it has entered into a framework agreement with Hong Kong Exchanges and Clearing Limited (HKEx) for a £1.388 billion cash offer for the entire issued and outstanding ordinary shares of LME Holdings.
LME Holdings recommends holders of ordinary shares of LME Holdings to vote in favor of the transaction at the ordinary shareholder meetings expected to be held by the end of July 2012.
The transaction will enable a significant long-term growth through the expansion of the LME's business and operations in Asia and the Chinese market under the ownership of HKEx.
The acquisition will provide LME with increased liquidity in the Asian time zone, new products tailored to Asian market needs, vertically integrated trading and clearing platform, market data distribution in China and international storage and assaying standards. As a result of the transaction, LME will gain access to the Asia/China warehouse network, as well as mainland participants and clients and develop RMB products.