Equiniti to Buy Wells Fargo's Share Registration Business for $227 Million

By Razak Musah Baba

LONDON--U.S. international financial services group Wells Fargo & Co (WFC) is selling its Share Registration & Services business, or WFSS, to the U.K.'s Equiniti Group PLC (EQN.LN) for $227 million.

Equiniti, which provides payment services, said Wednesday it plans to buy WFSS to create a multi-national share registration and services business. Equiniti said the acquisition will be conditional on the approval of Equiniti's shareholders at a general meeting in September.

Equiniti said the deal will be financed from a $160 million fully-underwritten rights issue and $155 million in fully-underwritten new debt facilities.

The acquisition is expected to complete during the fourth quarter of 2017.

Equiniti also said it expects significant cost savings of at least $10 million a year by the third full year of ownership.

At 0730 GMT, Equiniti shares were up 9 pence, or 3.6%, at GBP2.53, valuing the company at GBP754.7 million ($967.5 million).

-Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

(END) Dow Jones Newswires

July 12, 2017 03:57 ET (07:57 GMT)

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