Thomson Reuters said in August it would own 15% of LSE following the deal.
Blackstone supplemented its equity in Refinitiv with warrants and preferred shares. Reuters Breakingviews is the world's leading source of agenda-setting financial insight. The subsequent jump in LSE shares lifted it to $17.5 billion by Thursday. Last year they put in a total of just $6.5 billion in equity and equity-like securities. LSE’s net debt ratio to adjusted earnings before interest, tax, depreciation and amortization (EBITDA) stood at 1.7 as of June but may jump to 3.5 after the deal, analysts have said. LSE and New York Stock Exchange owner ICE (The deal was announced in August, just 10 months after a consortium led by U.S. asset manager Blackstone (Obtaining regulatory approval for the deal is likely to be a lengthy process and some assets may need to be sold, a source familiar with the deal told Reuters. It also added an insurance policy of sorts that would reduce its downside if things didn’t go well. Blackstone Reports First Quarter 2020 Results The use of debt to finance the original Refinitiv buyout magnifies the gains for the investors, which include Breakingviews parent Thomson Reuters. And by proposing the deal, the LSE may have sent out a beacon to those who would like to take over the UK exchange themselves. The upshot is that if the LSE deal goes ahead, Thomson Reuters comes out on top. First, it …

If the buyout fared poorly, these instruments would increase the private equity group’s share of Refinitiv at Thomson Reuters’ expense. If the London Stock Exchange’s takeover of Refinitiv goes ahead, that bet will pay off – but not in Blackstone’s favour. The sale of some or all of the Milan bourse would also help LSE cut its debt, which is expected to rise after the Refinitiv deal. There have been numerous attempts at cross-border alliances between exchanges for more than a decade as profits from the business of running stock markets have fallen but many of the deals have run into regulatory and political opposition. Some shares will be handed to Refinitiv executives as an incentive to stick around. The all-share deal will turn Refinitiv’s owners, which include US private equity group Blackstone and Canada’s Thomson Reuters, into the LSE’s biggest shareholders. It will give us an opportunity to have a truly global business,” LSE Chief Executive David Schwimmer said. FILE PHOTO: The Refinitiv logo is seen on a large screen in Canary Wharf in London, Britain August 1, 2019. “We feel very strongly this is in the long-term strategic interest of the London Stock Exchange.

However, if the deal performed well, Thomson Reuters’ share would rise instead.

The Blackstone-led consortium now owns 55 percent of the equity in a new corporation created to hold the F&R business, and Thomson Reuters retains a …

First, it used debt financing so that its consortium of investors only needed to put up a small amount of equity – just under one-third of the total $20 billion price. Thomson Reuters may have beaten Blackstone by a whisker – the question is whether it can collect the prize. LSE will issue about $14.5 billion of new shares to fund the deal and take on Refinitiv’s net debt of $12.5 billion. Both Blackstone and Thomson Reuters won’t be able to sell any LSE shares until at least 2022, under the terms of what both sides call a “relationship agreement”. In 2014, private equity funds managed by Blackstone acquired Gates Corporation, a leading global manufacturer of highly engineered power transmission belts and fluid power products used in diverse industrial and automotive applications. Schwimmer said he would not comment on market speculation. HONG KONG (Reuters Breakingviews) - When Blackstone bought a majority stake in Thomson Reuters’ financial data business last year, it found two ways to minimise its risk.

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