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CORRECTED-BRIEF-LSE says to buy Frank Russell Co for $2.7 bln in cash
June 26, 2014 / 6:55 AM / in 3 years

CORRECTED-BRIEF-LSE says to buy Frank Russell Co for $2.7 bln in cash

(Corrects typo in company name in headline)

June 26 (Reuters) - London Stock Exchange Group Plc :

* Acquisition of Frank Russell and rights issue

* Acquisition of entire issued share capital of Frank Russell Company from Northwestern Mutual and other minority shareholders of Russell for total cash consideration of $2,700 mln

* Brings together $5.2 trillion of assets benchmarked to russell and an estimated $4.0 trillion of equities benchmarked to ftse

* LSEG will undertake a comprehensive review of Russell’s investment management business to determine its positioning and fit with group

* Earnings accretive in first full year on an aggregate basis, with Russell’s index business accretive from year two on a standalone basis 3,4

* Russell’s president and chief executive officer, Len Brennan, will join executive committee of LSEG at completion

* Pro forma leverage is expected to be approximately 2.4x net debt to EBITDA as at completion and is expected to reduce to 2.0x or below in 12 months following completion 3,4

* About $1,600 million 1 of consideration will be financed from net proceeds of rights issue, with remaining approximately $1,100 million 1 financed from existing and new lseg bank debt facilities

* Rights issue is expected to be launched in September 2014, after approval of acquisition by shareholders

* Pursuant to rights issue, lseg has entered into a standby agreement with Barclays in respect of all new shares to be issued Source text for Eikon: Further company coverage:

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