Amsterdam, Brussels, Lisbon, London and Paris - On 31 October 2017 Euronext entered into definitive agreements to swap its current 2.3 per cent stake in LCH Group for an 11.1 per cent stake in LCH SA. This transaction has now been approved by the authorities and was completed on 29 December 2017.
The agreement is intended to strengthen the long-standing relationship between the two companies and to cement the strategic future of LCH SA.
Euronext will remain represented at the Board of Directors of LCH SA and will have certain minority protection rights connected with its new shareholding in LCH SA. This includes a pre-emption right in circumstances where LCH Group decides to sell more than 50 per cent of the shares of LCH SA.
The pre-emption right involves a right of first offer and subject to certain conditions, a matching right. In addition, LCH Group has a pre-emption right over a transfer of shares by Euronext and the ability to buy back Euronext's shares in certain circumstances where the derivatives agreement is terminated.