|
|
The Brussels-based settlement house is largely owned by its biggest users. It is valued at around £5bn to judge by the London Stock Exchange’s purchase of a 5 per cent stake this year. It is now seeking ways to allow some of its more capital-strapped shareholders to cash in. An initial public offering is one option. Attracting financial buyers is another. Hellman & Friedman, the US buyout group, is one of those in the frame, the Financial Times reported on Monday.
Euroclear is a mature but appealing business. Income is steady from holding and supplying financial markets with ready collateral. This is likely to rise as regulation tightens. There is room to raise margins. An adjusted operating margin of 38.5 per cent is 7 percentage points lower than that of rival Clearstream. A 9 per cent return on equity is also lower than US counterparts like State Street or Northern Trust, although much of that is explained by differences in business mix. [...]
Full article on Financial Times (subscription required)