Multinational North American derivatives marketplace CME Group Inc. has today announced it has delivered executed revised agreements to the Special Committee (the “Special Committee”) of the Board of Directors of GFI Group that, if approved, would increase the consideration payable to GFI Group stockholders to $5.85 per share from $5.60 per share, payable in a mix of shares of CME Group Class A common stock and cash.
This represents the latest installment in what became a bidding war between CME Group and BGC Partners to acquire GFI Group, which is currently ongoing over a month after the increased interest began to be displayed between the two potential suitors.
This new offer price represents more than an 88% premium above the closing price of $3.11 per share of GFI Group common stock on July 29, 2014, the last day of trading prior to the announcement of the CME transaction.
As part of the revised offer, the GFI Management Consortium and certain affiliates have now agreed to forego a total of approximately $40 million in consideration that would otherwise be payable to them in the transaction. CME is passing along this foregone consideration in its entirety to GFI stockholders and is not contributing any additional consideration as part of this revised offer.
The transaction remains subject to the approval of GFI Group’s stockholders; GFI Group will hold a special meeting of its stockholders on January 27, 2015 to vote on the CME transaction. If GFI Group stockholder approval is obtained, the parties expect the transaction to close shortly thereafter.
Barclays Bank PLC is acting as financial advisor to CME Group and Skadden, Arps, Slate, Meagher & Flom LLP is acting as CME Group’s legal advisor. Jefferies LLC is acting as financial advisor to GFI Group and Willkie Farr & Gallagher LLP is acting as legal advisor to the GFI Group Management Consortium.
For the official announcement from CME Group, click here.