Equiniti to Buy Wells Fargo's Share Registration Business for $227 Million
July 12 2017 - 4:12AM
Dow Jones News
By Razak Musah Baba
LONDON--U.S. international financial services group Wells Fargo
& Co (WFC) is selling its Share Registration & Services
business, or WFSS, to the U.K.'s Equiniti Group PLC (EQN.LN) for
$227 million.
Equiniti, which provides payment services, said Wednesday it
plans to buy WFSS to create a multi-national share registration and
services business. Equiniti said the acquisition will be
conditional on the approval of Equiniti's shareholders at a general
meeting in September.
Equiniti said the deal will be financed from a $160 million
fully-underwritten rights issue and $155 million in
fully-underwritten new debt facilities.
The acquisition is expected to complete during the fourth
quarter of 2017.
Equiniti also said it expects significant cost savings of at
least $10 million a year by the third full year of ownership.
At 0730 GMT, Equiniti shares were up 9 pence, or 3.6%, at
GBP2.53, valuing the company at GBP754.7 million ($967.5
million).
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
July 12, 2017 03:57 ET (07:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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