Deutsche Boerse confirms it's in talks to buy STOXX stake
Deutsche Boerse has confirmed that it has entered into negotiations with SIX Group, which operates most of Switzerland’s financial markets infrastructure, regarding a full acquisition of the joint-venture companies STOXX AG and Indexium AG for a purchase price of CHF650m.
If the discussions with SIX can be brought to a successful conclusion, a binding agreement will be subject to the approval of the supervisory board of Deutsche Boerse, potentially required regulatory approvals and the approval of the SIX board.
Currently, Deutsche Boerse owns 50.1% in STOXX AG and 49.9% in Indexium AG.
“New CEO Carsten Kengeter said he wants to engage in M&A (he said that at the analyst and investor event in London on 2 June), and less than one month into his official tenure has followed through on his word,” said RBC Capital Markets.
The brokerage noted that STOXX had approximately €40m in profit after tax in 2014.
“The valuation, on a last 12 months basis, is in the mid-20x price-to-earnings range, which is roughly in line with MSCI's current trading multiple and therefore a fair price for the asset, but we reserve further judgment until more financial details are disclosed,” said RBC.
“We expect a further announcement on STOXX/Indexium within the next four to eight weeks,” it added.
At 12:24, Deutsche Boerse shares were up 0.4% at €74.97.