TAIPEI, Taiwan–(BUSINESS WIRE)–Brooks Dawson Alliance has commented on the Hong Kong Stock Exchange as they prepare to make a formal bid for the London Stock Exchange Group before its deadline on Wednesday. The preliminary £32 billion offer needed to be revised alongside its terms.
The Hong Kong Stock Exchange attempted to persuade the London Stock Exchange Group’s shareholders of the advantages with a stock and cash proposal. The preliminary offer was £83.61 a share, however, LSE shareholders were unwilling to approach without a formal bid that also addressed a range of issues such as future governance.
The London Stock Exchange Group’s share price rallied up by 16 percent at the time of the offer, trading around £73.37 on Friday morning, up 7.8 percent.
Brooks Dawson Alliance researchers and analysts noted that the Hong Kong Stock Exchange initial preliminary offer was rejected as they were valuing the company towards £90 per share.
Currently, the LSE is pursuing a deal worth $27 billion U.S. Dollars to purchase trading group Refinitiv. LSE has submitted a timeframe of no later than Wednesday to submit an official offer or wait at least six months for negotiations to restart.
“There is a doubt that the HKSE can put a deal in before the tight deadline. If they can find common ground, there is still the question of an increased bid by more than 10 percent,” commented David McVey, Director of Institutional Trading at Brooks Dawson Alliance.
Researchers from Brooks Dawson Alliance highlighted that the Hong Kong Stock Exchange has successfully developed a world-leading IPO market that has topped world rankings in the past decade.
The companies it relies on are from mainland China which represented 68 percent of its market cap and 95 percent of all funds raised through Hong Kong last year. Its management believes that it can gain a much wider audience from a global perspective with a takeover of the London Stock Exchange.
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