Hong Kong Exchanges & Clearing Ltd. is in discussions to borrow between £7 billion and £8 billion of loans from several banks to back its proposed takeover bid for London Stock Exchange Group PLC, Bloomberg News reported Sept. 27, citing people familiar with the matter.
The Hong Kong exchange operator is looking to form a syndicate of several lenders, the sources said.
Earlier in September, Hong Kong Exchanges proposed to the board of LSE to combine the two bourses, but LSE rejected HKEX's takeover proposal citing complications ranging from Hong Kong's unrest to potential problems with regulators.
Hong Kong Exchanges' proposal also included a condition for LSE to scrap its deal to acquire financial data provider Refinitiv Holdings Ltd. not going ahead.
The proposed merger values the British bourse's entire issued and to-be-issued ordinary share capital at roughly £29.6 billion and implies an enterprise value of £31.6 billion, including net debt and other adjustments of around £2.0 billion as of June 30.
Under U.K. takeover rules, Hong Kong Exchanges must submit a formal offer by Oct. 9 unless LSE grants an extension.
A representative for the Hong Kong bourse operator declined to comment on the matter, the news outlet reported.
