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LSEG investors offload $2.4 billion of shares in London bourse owner

Published 06/03/2024, 07:18
Updated 06/03/2024, 08:42
© Reuters. FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo

LONDON (Reuters) -A consortium of investors in London Stock Exchange Group (LON:LSEG) sold about 1.9 billion pounds ($2.41 billion) of shares in the London bourse owner, as it looks to cash in on rising interest in LSEG's transition into a financial data powerhouse.

The consortium, which includes private equity firm Blackstone (NYSE:BX), Thomson Reuters and other investors, "executed a monetisation" of about 21.5 million shares in LSEG.

Institutional investors purchased around 15.9 million shares at 8,980 pence per share, reflecting a discount of around 0.7% to Tuesday's closing price.

LSEG said it agreed to buy back around 5.6 million voting and limited-voting ordinary shares from the consortium in a 500 million pounds off-market transaction.

The company paid 8,917 pence per share. LSEG has said it expected to execute up to 1 billion pounds of share buybacks during 2024.

LSEG shares were trading 2.8% higher at 0813 GMT.

Data now represents 70% of turnover at LSEG, which posted total 2023 income, excluding recoveries, of 8 billion pounds, up 7.8% and at the higher end of a 6-8% forecast on Feb. 29.

LSEG bought Refinitiv for $27 billion from Blackstone three years ago. Thomson Reuters, which owns Reuters News, has a minority shareholding in LSEG after the Refinitiv deal. LSEG also pays Reuters for news.

At a capital markets day in November, LSEG raised its mid-term growth guidance to "mid to high single digits" as it looks beyond the integration of Refinitiv to the benefits of its $2 billion tie-up with Microsoft (NASDAQ:MSFT).

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($1 = 0.7868 pounds)

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