Allfunds snaps up in Amsterdam after Deutsche Boerse's 5.3bn offer
Allfunds' shares moved towards the offer price, which was set at EUR 8.8. Board 'unanimously' recommends shareholders vote in favour
(Il Sole 24 Ore Radiocor) - Allfunds Group ran up in Amsterdam and closed the session up nearly four percentage points. The move comes on the heels of the announcement of the transaction with Deutsche Boerse - also up well in Frankfurt - which reached an agreement for the acquisition of the entire capital of the asset technology, with a comprehensive offerof EUR 8.8 per share, consisting of cash (EUR 6), Deutsche Boerse securities (EUR 2.6) and dividends (EUR 0.2).
The market thus continues to price the M&A dossier, valuing Allfunds at around EUR 5.3 billion - compared to a current capitalisation of around EUR 4.8 billion - and incorporating a significant premium to pre-negotiation levels on 27 November. Looking at the last 3 months, in fact, the group has consolidated a growth of around 31%, reflecting the expectation for the successful outcome of the transaction and the industrial synergies indicated by the group in fund services.The Allfunds board, according to a note released last night, "unanimously supports" the transaction and intends to recommend that shareholders vote in favour by next March, with the closing scheduled for the first half of 2027.
In support of the deal, Deutsche Boerse states that it has obtained irrevocable commitments on 292 million Allfunds securities, representing approximately 48.9% of the issued capital: LHC3 with 215 million securities (36.1%) and Bnp Paribas with 76.4 million (12.8%), as well as a smaller share in the hands of the board. The ceo of Deutsche Borse, Stephan Leithner, emphasised in the note precisely how 'the acquisition of Allfunds will be supported by the two main shareholders'.
"We believe that the combination of Allfunds' technical expertise and entrepreneurial spirit with Deutsche Borse Group's capabilities in Clearstream services will create an industry-leading business," added Leithner, speaking of a "next step in the development of Deutsche Borse as a European champion of critical financial market infrastructure". On the Allfunds Group plc side, CEO Annabel Spring emphasised the synergy aspect of the deal: "Our complementary footprints and capabilities create a world-class player, with global reach and local relationships, that will better support distributors and partners and propel the asset management industry forward".
