According to today’s announcement, the acquisition of NEX by CME London Limited (Bidco) and CME Group Inc remains on track. “As previously outlined, the transaction with CME remains on track to complete in the second half of the current calendar year”, said Michael Spencer, Group Chief Executive Officer of NEX.
Let’s recall that, as per the agreement, CME will pay 500 pence in cash and 0.0444 new CME shares for each NEX share, thus putting the value of each share of NEX at 1,000 pence. NEX’s entire issued and to be issued share capital is thus valued at approximately £3.9 billion. The bid represents a premium of approximately 49.2% to the Closing Price per NEX Share of 670.5 pence on 15 March 2018 (being the date the Offer Period commenced).
In addition, NEX Shareholders will be entitled to receive a final dividend for NEX in respect of the year ending March 31, 2018, such dividend not to exceed an amount of 7.65 pence per NEX Share.
Regarding NEX’s performance in the quarter to June 30, 2018, the Group today said its revenue increased by 7% on a constant currency basis (3% on a reported basis) benefitting from divisional performance and FX hedges. NEX Markets revenue increased by 2% on a constant currency basis (decreased by 2% on a reported basis) as the phasing of the CFETS revenue recognition weighed on revenue growth. NEX Optimisation’s revenue increased by 7% on a constant currency basis (4% on a reported basis) during the three months to June 30, 2018 compared to the same period in 2017.
Michael Spencer, Group Chief Executive Officer of NEX, commented: “We’ve seen a solid start to the year with episodic volatility driving volumes across the EBS and BrokerTec platforms and increased demand for our products and services from TriOptima and Reset”.
NEX Group is set to have its Annual General Meeting later today.
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