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Negotiations have been concluded between the London Stock Exchange (LSE), owner of Borsa Italiana, and Euronext, the market company that groups together the lists of 7 European countries, including Paris, Amsterdam and Brussels, and, from today, also Milan. In a press release issued by the LSE, the sale of Borsa Italiana and MTS, the electronic market for government bonds in which BTPs are traded, is made official to Euronext, for a capital value of 4,325 million euros plus an additional consideration . yet to be defined, which must be calculated in relation to the generation of cash registered by Borsa Italiana until its completion, expected in the first half of next year but subject to another transaction.
EU authorization for the Refinitiv operation
In fact, LSE expects to complete the purchase of Refinitiv between the end of the year and the beginning of 2021. The outcome of the sale of Borsa Italiana also depends on this transaction. The operation – underlines the British company – is conditional, among other things, on the divestment of Borsa Italiana or any relevant part of it (including Mts) as a condition for any authorization decision of the European Commission on the Refinitiv transaction. However, Lse hopes that Brussels will impose the sale of the Italian company to give the green light to the Refinitiv agreement: the signing of the agreement with Euronext, the Commission’s green light to the consortium for the purchase of Borsa Italiana and other conditions The authorizations are considered critical factors to get the green light for Refinitiv. The proceeds of the sale will be used to pay off part of the debts incurred to acquire the New York company and thus reduce its financial leverage. The company believes it has obtained an interesting valuation for Borsa Italiana in light of a multiple equal to 16.7 times the 2019 adjusted Ebitda.
7.3% Cdp, 1.3% Intesa Sanpaolo
With the operation that will place Borsa Italiana in the orbit of Euronext, Cdp, through the subsidiary Cdp Equity, led by Pierpaolo Di Stefano, it will own 7.3% of Euronext’s share capital, as the Caisse des Depots et Consignation . After the dilution determined by the private placement, Intesa Sanpaolo will have a 1.3% stake. Mediobanca was an advisor to Euronext in the Borsa Italiana operation.
La Cassa will become part of the current group of reference shareholders of the company, which will manage, in addition to Borsa Italiana, 6 other stock exchanges in Belgium, France, Ireland, Holland, Norway and Portugal with more than 1,800 listed companies for a total market capitalization of approximately € 4.4 billion. We are especially proud to be the protagonists of this operation: Cdp contributes to turning Piazza Affari into a pan-European group with a stable presence of Italian investors. By acquiring 7.3% of Euronext, Cdp will expand its commitment as a long-term investor to support companies that will benefit from an Italian-led capital market in a broader European perspective, said the CEO of Cassa, Fabrizio Palermo. The agreements state that two Italians will join Euronext’s Supervisory Board after the transaction. The independent president and a director representing Cdp Equity. Space also for the CEOs of Borsa Italiana and MTS who will join the governing bodies of the Euronext group.
We have built a long and successful relationship with the London Stock Exchange Group, which has invested and developed our business for the last 12 years. We look forward to embarking on the next phase in our history, working in partnership with Euronext, CdP Equity and Intesa Sanpaolo to further develop our business and contribute to the development of the European capital markets. This is how Raffaele Jerusalmi, CEO of Borsa Italiana, comments in a note about the agreement for the sale of Piazza Affari to the consortium led by the manager of the transalpine stock exchange.
Euronext, a pan-European market
According to Stphane Bounjnah, CEO of Euronext, the integration of Euronext and the Borsa Italiana group with the strategic support of Cdp makes the ambition to build the infrastructure of a leading pan-European market that connects local economies with global markets a reality. This transaction will strengthen the position of the Borsa Italiana Group within the European capital markets. The proposed integration will create the backbone of the Capital Markets Union in Europe. Borsa Italiana Group will maintain its identity and integrity within Euronext’s federal model, benefiting from improved governance, an acceleration offering and technology to better serve the European capital market.
