Euronext confirmed today that it has completed the settlement of shares under its offer launched on April 23 to acquire 100% of VP Securities, the Danish Central Securities Depository. Euronext said it will now fully consolidate VP Securities’ accounts in its financial statements.
According to a statement released this morning, shareholders representing more than 90% of the total share capital of VP Securities (adjusted for treasury shares) have already accepted Euronext’s offer. Euronext’s tag-along offer to acquire the remaining shares in VP Securities will remain open until 31 August 2020. Any other shareholders, and shareholders with specific rights, who accept the Euronext offer before 31 August 2020 will receive payment on or around 10 September 2020. Following such settlements, Euronext will initiate a compulsory acquisition procedure to acquire the remaining shares not already tendered, in accordance with the rules of the Danish Companies Act.
Analysts say the acquisition of VP Securities positions Euronext as a leading CSD operator in Europe with three CSDs (Euronext VPS in Norway, Interbolsa in Portugal and VP Securities in Denmark) representing €2.2 trillion in assets under custody, 31 million settlement instructions per year and 4.5 million accounts. Post-trade is now a major contributor to Euronext revenues, said the infrastructure group, reaching 23% of 2019 pro forma revenue, significantly increasing the share of non-volume related revenue. Furthermore, the statement continued, following the acquisition of Oslo Børs VPS, completed in June 2019, and Nord Pool in January 2020, Euronext has developed a strong Nordic skillset and has built increasing proximity with the client community in the Nordic region, to the full benefit of the local ecosystems.
“Post-trade activities are at the heart of Euronext’s growth strategy, and will be an even larger contributor to our revenue following the acquisition of VP Securities,” said Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext. “Alongside Euronext VPS and Interbolsa, we will strengthen our positioning in this field, and continue to expand our footprint in the Nordic region with new and improved services to the benefit of the Danish economy and European capital markets,” Boujnah added.
Euronext also announced the appointment of Maria Hjorth, current deputy CEO, as the new CEO of VP Securities, subject to regulatory approval. Hjorth will replace Niels Olsen who decided to resign to pursue personal projects, after leading the development of VP Securities over the past seven years, and will report to Anthony Attia, Euronext’s Global Head of Listing and Post-Trade.