London Stock Exchange owner sells Euroclear stake for £455m

The owner of the London Stock Exchange has sold its minority stake in financial markets infrastructure provider Euroclear for £455m.

The London Stock Exchange Group (LSEG) said on Thursday that it completed the divestment of its 4.92 per cent holding in the Belgium-based firm.

It sold the stake to TCorp, the investment and financial management partner to the New South Wales government in Australia.

The sale means a hefty return for LSEG after it bought the stake for €278.5m (£241.9m) in 2019. The latest deal gives Euroclear an implied valuation of roughly £9.25bn.

Euroclear plays a key role in the global clearing and settlement of securities transactions, including bonds, equities, derivatives and investment funds.

LSEG bought into Euroclear to strengthen its influence over core market infrastructure.

Under chief executive David Schwimmer, an American banker who joined LSEG in 2018, the group has transformed into a data and analytics behemoth with some 25,000 staff and operations in more than 60 countries.

However, fears have grown over its flagship exchange, which has seen just 14 new firms list this this year in one of its worst periods ever for IPO activity.

Intercontinental Exchange, which owns the New York Stock Exchange, sold its stake in Euroclear for €709m.

The deal saw companies owned by the French and Belgian governments become investors in the firm.

“This is another important step in our transition from a user-owned model to one more oriented towards client centricity and long-term shareholder value creation,” Francesco Vanni d’Archirafi, Euroclear’s chair, said on Thursday.

JP Morgan and BNP Paribas advised LSEG on its divestment in Euroclear.