Euronext NV, one of the biggest exchanges in Europe, has recently issued out a statement in regards to the company’s plans with Bolsas y Mercados Españoles, or BME.

Concluding That Value Will Not Be Gained

Within this statement, Euronext claims that it has been in the process of in-depth scrutiny over a potential offer for BME itself. After the company analyzed all facts and data available to them, including that of competitive and market conditions, the company has made a judgment. Euronext stated that it would have no intent to make an offer for BME, confirming its position overall.

Euronext gave the reasoning as the fact that it considered the potential competing offer’s financial terms. With this in consideration, the company concluded that there was no compatibility in value creation, nor an adequate return for invested capital Euronext shareholders would give out. This comes despite the company’s potential synergies.

A New Offering

It’s only last week when SIX Group AG, the Swiss financial markets infrastructure operator, had announced that the authorizations were in place for the CNMV to enact its all-cash voluntary tender offer for BME as a whole. When you crunch the numbers, the total value in equity for this deal arrives at approximately EUR 2,793 million, or alternatively CHF 2,952.76 million. While the initial offer price totaled at 34 Euros a share, this was adjusted by the gross amount of the dividend, which clocked in at 0.60 Euros per share. This was paid by BME itself back on the 30th of December, 2019

Furthermore, the consideration will be once again adjusted by the gross amount of an additional dividend totaling at EUR 0.42 per share. This is expected by BME itself to pay on the 8th of May, 2020. This is assuming that the date when the offer’s end date will take place on or otherwise later than the ex-dividend date. The hope is that the results will be published on the various trading bulletins before that.

A Few Stipulations

The offer given by SIX, stands subject to a minimum acceptance level. This minimum has been pushed at 50%, plus one share capital of BME. When you put that all together, the total minimum buy-in for the shares stands at 41,807,780.

This won’t be a good indication for BME, as many will take what Euronext has said to heart. With any luck, the company will be capable of getting a buyer for the offering, and things can go on as they always go on.