Hong Kong bourse seeks $1 bln for LME takeover

The Hong Kong Stock Exchange said Friday it will sell $1 billion in new shares to fund a takeover of the London Metal Exchange, a day after the deal received the green light from British regulators. The HKEx, the holding company of Hong Kong's bourse, said it plans to raise up to HK$7.75 billion ($1 billion) by selling 65.7 million new shares priced at HK$118 each, it said in a statement. HKEx "intends to use the net proceeds to partly fund" the purchase of the 135-year-old LME, the world's largest exchange trading non-ferrous metals, including copper and aluminium. The deal is valued at $2.15 billion. "We are looking forward to finally consummating our acquisition of the LME and to realising the benefits of the acquisition for our shareholders and other stakeholders," HKEx chief executive Charles Li said in the statement. The LME said Thursday that Britain's Financial Services Authority has approved the takeover bid, and expected the deal to become effective around December 6 after a court hearing to finalise the transaction. LME chief executive Martin Abbott had in October said he was hopeful of completing the takeover by the end of this year. HKEx has said its purchase of the LME will strengthen its role as a bridge between China and international markets.