Euronext is in talks to buy the Athens Stock Exchange for 399 million euros ($470 million) in an all-share deal. The European stock exchange operator announced on Tuesday its plan to offer one new share for every 21 shares held by ATHEX investors. This values ATHEX stock at 6.90 euros per share, higher than Tuesday’s closing price of 6.03 euros.
The Greek Finance Ministry welcomed the offer, stating that a possible acquisition of the Athens Stock Exchange by Euronext shows confidence in the stability and positive course of the Greek economy. Euronext’s goal is to consolidate European capital markets. The group sees fragmentation as a key issue affecting the competitiveness of European markets compared to their U.S. counterparts.
To address this, Euronext has introduced a European Common Prospectus to help keep initial public offerings within Europe. Euronext operates markets across Belgium, France, Ireland, Italy, the Netherlands, Norway, and Portugal.
Euronext unifies European capital markets
It facilitates trading of about 2,000 listed companies, with a combined market capitalization exceeding 6.6 trillion euros. The proposed deal would involve a fixed conversion rate of 21.029 ATHEX ordinary shares for each new Euronext share. Based on Euronext’s closing price of 145.10 euros on June 30, the offer values ATHEX at 399 million euros on a fully diluted basis.
The proposal is still subject to due diligence, and no final agreement has been reached. If completed, the transaction would give ATHEX access to a group that currently hosts more than 1,800 listed companies with a combined market capitalization exceeding 6 trillion euros. Euronext emphasized that the discussions are ongoing and that there is no certainty that an agreement or offer will result.
The acquisition of ATHEX would represent a significant step in Euronext’s strategy to consolidate and harmonize European capital markets, while strengthening the financial infrastructure available to Greek issuers and investors. Market participants await further developments.
