London Stock Exchange Group (LSEG) today announces an amendment to the terms of the Relationship Agreements between LSEG and the former shareholders of Refinitiv.
The Relationship Agreements are being amended to allow the former Refinitiv shareholders to introduce leverage of up to 20% on the value of their entire shareholding in LSEG that is subject to lock-up provisions, including by allowing a pledge, charge or grant of another security interest under a margin loan. There are no other changes to the Relationship Agreements or the original lock up provisions.
All market related hedging activity in relation to the LSEG Shares underlying the Security Interest by any party continues to be prohibited, other than in the unlikely event of enforcement of the Security Interest. The agreed amendment is a common arrangement for large strategic shareholdings.
The “Relationship Agreements” comprise the original Relationship Agreement and Relationship Agreement Support Agreement (the “Relationship Agreements”) which between them govern the relationship between LSEG and the former direct and indirect shareholders in Refinitiv.
On January 29, 2021, LSEG confirmed the completion of its all-share acquisition of Refinitiv. Back then, LSEG and the Refinitiv Sellers agreed to vary the Relationship Agreement to permit the Refinitiv Sellers to sell a small number of LSEG Shares in order to enable certain persons with interests in Refinitiv, including UK resident members of Refinitiv management, to satisfy certain tax liabilities that they will incur in connection with completion of the transaction.