logo
Plus   Neg
Share
Email
Comment

Knight Capital, GETCO Announce Approvals Of Merger

Knight Capital Group Inc. (KCG) and GETCO Holding Co. LLC said Wednesday that the companies' stockholders and unitholders approved the adoption of the merger agreement among KCG Holdings Inc., Knight, GETCO, and the other parties thereto.

In addition, regulatory approvals required under the merger agreement were received from the Financial Industry Regulatory Authority (FINRA) and the UK's Financial Conduct Authority (FCA).

The transaction, which remains subject to customary closing conditions, is scheduled to close on Monday, July 1.

"The combination of our two companies creates a securities firm with unmatched scale and depth across asset classes, product types and geographies," said Daniel Coleman, CEO of GETCO and incoming CEO of KCG.

The deadline for Knight stockholders to submit a merger consideration election under the merger agreement was on June 25, 2013. Based on preliminary results of the elections, an aggregate of about 269.7 million Knight shares have elected to receive the cash consideration of $3.75 per share and 6.7 million Knight shares have elected to receive the stock consideration of one third of a share of KCG common stock for each share of Knight Class A common stock.

These preliminary results exclude guaranteed delivery shares. The cash portion of the consideration will be subject to the pro-ration procedures described in the merger agreement (including the waiver by Jefferies LLC of its right to receive cash consideration with respect to up to 50% of its shares), as a result of holders of more than 66.7% of the Knight common stock electing to receive the cash consideration.

Knight stockholders who elected to receive all their merger consideration in cash will receive a combination of cash consideration and stock consideration.

The exact allocation of the cash merger consideration will not be known until final results of the election process are determined, at the end of the guaranteed delivery period.

After the final results of the merger consideration election process are determined following the expiration of the guaranteed delivery period, the actual merger consideration and the cash and stock allocation will be computed using the procedures contained in the merger agreement.

After the close of the transaction, KCG common stock is expected to trade under the ticker symbol "KCG" on the NYSE.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Tech giants Amazon.com, YouTube and Twitter as well as Verizon Communications are exploring bids for digital streaming rights to the National Football League or NFL's Thursday Night Football package, according to media reports. The NFL is likely to strike a multi-year deal for the digital streaming rights. However, the television audience for the NFL has declined for two consecutive years. Wynn Resorts Ltd. said Friday that former Chief Executive Officer Steve Wynn is not entitled to any severance payment of other compensation from the company. Wynn resigned last week as CEO and Chairman of the board following allegations of sexual misconduct. In a regulatory filing, Wynn Resorts said it entered into a separation agreement between Steve Wynn, and Wynn Resorts Holdings LLC. Beverages giant Coca-Cola Company on Friday reported a net loss for the fourth quarter, reflecting a one-time charge related to the U.S. tax reform and a double-digit decline in revenues. However, adjusted earnings per share matched analysts' expectations, while revenues beat their estimates. The company's shares are rising more than 2 percent in pre-market activity.
comments powered by Disqus
Follow RTT