* HKEx offers new shares at discount of up to 7 pct to
* Two more hurdles remain for HKEx proposed $2.2 bln LME
HONG KONG Nov 29 Hong Kong Exchanges and
Clearing Ltd is raising about $800 million to fund its
takeover of the London Metal Exchange, tapping equity markets
minutes after receiving approval on Thursday from Britain's
Financial Services Authority for the acquisition.
The proposed $2.2 billion takeover of the LME marks the
biggest foray for the HKEx, the world's No.2 exchange operator
by market value, as it looks to expand beyond its traditional
business in stock trading.
Approval from the British regulator leaves HKEx with only
two more hurdles to closing the transaction. HKEx said in a
securities filing a court hearing to approve the deal and
confirm capital reduction were expected on Dec. 5, after which
it would become unconditional and take effect the next day.
The acquisition has been hailed by HKEx Chief Executive
Charles Li as "transformational," giving the Hong Kong bourse
operator access to the 135-year-old LME, where trading of
copper, aluminium, nickel and other metals is still conducted
with arcane hand gestures and screaming traders.
To fund part of the acquisition, HKEx is offering new shares
in a range of HK$116.1-HK$119 each, IFR, a Thomson Reuters
publication, reported, citing a term sheet of the deal. The
price is equivalent to a discount of up to 7 percent to
Thursday's close of HK$124.80.
Deutsche Bank AG, HSBC, UBS AG
were hired to manage the share sale, IFR added.