SG’s GIC among firms eyeing stake in Brussels-based Euroclear

REUTERS/Anshuman Daga

Buyout firm CVC Capital Partners and Singapore’s sovereign wealth fund GIC Pte are among firms considering bids for a stake in the $6.4 billion European settlements giant Euroclear, according to people familiar with the matter.

The Brussels-based company, which counts London Stock Exchange Group Plc as a shareholder, is planning to decide in the coming days whether to pursue a stake sale or an initial public offering of the business, the people said, asking not to be identified as the matter is private.

Some of the existing owners are willing to offload up to 40% of the business in a sale or IPO, the people said. The company is also open to selling smaller stakes of about 5% to 15% at a time to individual bidders, they said.

No final decisions have been taken and the talks may not result in a deal, the people said. Representatives for Euroclear, CVC and GIC declined to comment.

Euroclear hired Goldman Sachs Group Inc. to find ways for some shareholders to cash out of the business either through an IPO or stake sale, Chief Executive Officer Lieve Mostrey told shareholders in March. Intercontinental Exchange Inc. has built a 10% stake in the company, while LSE bought a 4.9% holding in January. LSE’s 278.5 million-euro ($313 million) investment valued Euroclear at about $6.4 billion, according to a company filing at the time.

If Euroclear decides to pursue a listing, it will be one of the largest initial offerings from a financial services provider in Europe this year. The company is an essential piece of market infrastructure, providing a platform to deliver securities to buyers and payments to sellers when stocks or other financial assets are traded. It holds 29.6 trillion euros in assets and settles more than 791 trillion euros in securities transactions each year, according to its website.

Fifty-year-old Euroclear has historically been majority owned by banks. It has about 115 shareholders, the largest of which is Sicovam Holding, and the 20 biggest investors hold about 65% of the company’s shares. Euroclear moved its holding company from London to Brussels in response to Brexit.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.