Summary
CME Group Inc. (CME) filed an 8-K on June 28, 2010, reporting an unregistered sale of equity securities. The company entered into a Share Purchase and Investor Rights Agreement with BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros (BVMF) on June 22, 2010. This agreement details BVMF's acquisition of approximately 2.2 million shares of CME Group's Class A common stock for a total of roughly $607 million, increasing BVMF's ownership to approximately 5% as part of an expanded strategic partnership. The transaction, valued at $275.12 per share, is expected to close in the third quarter of 2010, subject to standard closing conditions. The sale is being conducted under the exemption provided by Section 4(2) of the Securities Act of 1933, meaning the shares are not being registered with the SEC. This move signifies a deepening of the strategic alliance between CME Group and BVMF, with investors to monitor the implications of this increased stake and partnership for future growth and market access.
Key Highlights
- 1CME Group Inc. announced an agreement for BVMF to increase its ownership to approximately 5%.
- 2BVMF will acquire 2,206,478 shares of CME Group's Class A common stock.
- 3The total transaction value is approximately $607 million, with a per-share price of $275.12.
- 4This equity sale is part of an expansion of an existing strategic partnership between CME Group and BVMF.
- 5The sale of shares is being conducted under the unregistered securities exemption pursuant to Section 4(2) of the Securities Act of 1933.
- 6The closing of the transaction is anticipated in the third quarter of 2010, contingent upon customary conditions.