The LME said the transaction was expected to become effective on or around December 6, subject to certain conditions.
LONDON(BullionStreet): LME's acquisition by Hong Kong Exchanges and Clearing Ltd passed yet another hurdle as Britain's Financial Services Authority cleared the $2.2 billion plan.
In a statement issued here The London Metal Exchange (LME) said Britain's Financial Services Authority had approved its $2.2 billion (1.4 billion euro) takeover by Hong Kong Exchanges and Clearing.
HKEx will still have to go through a court hearing to approve the transaction, and to meet the capital requirement for the deal that costs as much as $2.2 billion.
The court hearing to approve the deal and confirm capital reduction was expected on Dec. 5, after which it would become unconditional and take effect the next day.
Meanwhile, HKEx is placing new shares at HK$116.1-119 -- representing a 4.6-7 percent discount on today's close at HK$124.8 -- to rasise as much as HK$6.24 billion.
Part of the proceeds will be spent to complete the transaction. Earlier, shareholders in the London Metal Exchange overwhelmingly supported the acquisition
The bid was approved by 99.2 per cent of shareholders – largely the banks and brokers who use the exchange – voting at an extraordinary meeting on Wednesday, with an almost full turnout of 99.6 per cent.