Big LSE supports additional costs of shareholder refinancing


The London Stock Exchange Group, one of the largest shareholders, has backed additional spending to address long-term problems in its new bn 27bn purchase refinance, saying the group should “invest more and more as needed”.

Lindsell Train, the group’s fund manager’s largest shareholder, told investors it was “important not to look at the strategic advantage of the deal” after losing one-fifth of their LSE shares last month.

There are investors Excited The LSE said in March that it would cost more than expected to consolidate data and trading providers about the impact of refinancing and that Borsa Italiana was ready for sale at Euronext.

That unexpected announcement was the biggest trigger One day fall Shares on LSE for 20 years

The largest refinancing purchase in the history of the exchange has made LSE one of the largest infrastructure and financial information providers in the world and one of the most valuable in the FTSE 100.

In one fell swoop, the deal tripled the group’s revenue and quadrupled the number of employees to more than 25,000.

Buying refinances means taking on a business To lose uninterruptedly Some of its decades-old market share is close to Bloomberg and smaller, more fixed and more competitive than S&P Global Market Intelligence. Last week, a Wide distraction Its icon in Refinitive made data terminals unavailable for several hours.

Last year, annual results revealed that LSE would spend 1 1 billion this year – 8 850 million in capital and operating 150m in operating costs – which analysts feared would hit the financial targets for the deal.

Lindsell Train has a 4.2 percent stake. The larger holdings are owned by companies led by Blackstone, Thomson Reuters and the Sovereign Wealth Fund of Qatar.

In a meeting with shareholders after the exchange’s earnings disclosure, Lindsell Train said LSE management knew they would need to invest in refinances when they work on the deal in 2019.

“Thomson was part of an investment thesis based on the knowledge that Reuters has invested in certain areas. Given the scale and complexity of the business, it always required heavy lifting, ”said Nick Train, co-founder of Lindsell Train. His comments were published in a monthly publication to investors.

“LSE shares remain a key holding in Lindsell Train’s UN portfolios due to the rarity of significant global data trading in the context of the UK stock market.” Fund House said it would not add further comments. The LSE said its previous market direction in terms of spending remained unchanged.

Shares of LSE recovered this month, with analysts saying higher prices have now accumulated in line with market expectations.



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