Euronext's Acquisition of ATHEX Group: A Milestone in European Markets
Euronext, the prominent European capital market infrastructure, has successfully completed its voluntary share exchange tender offer for ATHEX Group, the leading company of HELLENIC EXCHANGES-ATHEX STOCK EXCHANGE S.A. This strategic move underlines Euronext's commitment to enhancing market capabilities and providing stronger infrastructures to the European trading landscape.
Major Indicators of Success
The acceptance period for the tender offer lasted six weeks, during which impressive shareholder engagement was observed. A total of 42,953,405 ATHEX shares were tendered, constituting about 74.25% of its voting rights. This overwhelming response not only indicates shareholder confidence but also highlights the anticipated growth trajectory Euronext envisions with the inclusion of ATHEX. By reaching the minimum requirement of 28,925,001 shares, the offer fulfilled all necessary conditions, paving the way for a successful transition.
Regulatory Approvals Received
On 14 November, Euronext confirmed it had obtained all requisite regulatory approvals for the acquisition. This significant development solidified the operational readiness for integrating ATHEX into Euronext’s existing framework, which is critical for fulfilling strategic operational goals.
Driving Future Growth and Integration Benefits
Euronext expects substantial synergies resulting from this integration. By migrating Greek trading to Optiq®, they anticipate achieving €12 million in annual cash savings by the end of 2028. Euronext's experts estimate that initial investment costs of €25 million for integration will set the stage for long-term gains, reinforcing the solid value proposition for Euronext's shareholders.
Statements from Leadership
Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext, expressed enthusiasm over the deal, stating that integrating ATHEX not only strengthens Greece's financial landscape but also aligns with broader European economic goals. He emphasized that local economies would benefit from enhanced trading technologies and international exposure.
This acquisition is a pivotal element in Euronext’s strategy for diversification within Europe, particularly in Southeastern regions that show promising growth potential. Boujnah reiterated the importance of investing in local talent and fostering innovation to ensure both immediate and sustained success.
Upcoming Timetable and Actions
Euronext plans to issue new ordinary shares, referred to as Consideration Shares, on 21 November. Following this, on 24 November, the settlement for the tender offer is scheduled. All holders of the ATHEX shares who participated in the tender offer will receive their shares on that date, which will also be listed for trading on Euronext’s regulated platforms.
Future Prospects and Plans
Beyond the immediate integration, Euronext is considering strategies to optimize its ownership of ATHEX. With less than 90% of voting rights tendered, Euronext is exploring various options for consolidating its position within the ATHEX Group, with further updates anticipated.
Commitment to Investor Relations
Euronext remains devoted to keeping investors informed as the process unfolds. Any modifications to the established timetable will be promptly communicated through official channels, ensuring full transparency.
Frequently Asked Questions
What does the acquisition of ATHEX by Euronext signify?
The acquisition marks a strategic enhancement of Euronext's market infrastructure and aims to improve the competitive position of the Greek capital market on a global scale.
What benefits are anticipated from this acquisition?
Euronext expects significant operational synergies, with a target of €12 million annual cash savings by 2028 through streamlined processes and enhanced technologies.
When will the new shares be issued?
The new ordinary shares for the acquisition will be issued on 21 November, with settlement of the tender offer occurring shortly thereafter on 24 November.
Who can be contacted for investor inquiries?
For any investor-related queries, stakeholders can reach out to the Investor Relations team at ir@euronext.com.
How does Euronext plan to support Greek employees?
Euronext plans to establish a new support and technology center in Athens, focusing on developing opportunities for local talent and fostering professional growth.
