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Magic Circle duo advise on LSE’s £938m rights issue as part of £1.6bn Frank Russell acquisition

Magic Circle firms Freshfields Bruckhaus Deringer and Linklaters, alongside some of the leading US firms, have advised on the London Stock Exchange Group (LSEG) rights issue for £938m to help fund a £1.6bn acquisition.

The LSEG said in late June it would acquire global asset management firm Frank Russell Company from Northwestern Mutual for $2.7bn. The fully underwritten rights issue is intended to raise net proceeds of £938m as part of the cash consideration for the buyout.

The issue will be priced at £12.95 a share, with a total issuance of around 74.3m ordinary shares or approximately 27.3% of LSEG’s existing issued share capital.

Freshfields’ advised LSEG on the acquisition and issue with corporate partner Andrew Hutchings leading alongside partners Mark Rawlinson, Mark Austin, Sarah Murphy, James Smethurst and Simon Priddis, while corporate partner Sean Rodgers and a team from Kirkland & Ellis provided US law advice to the company.

Linklaters advised the underwriting banks Barclays, RBC Capital Markets, Deutsche Bank, JP Morgan Cazenove, Banca IMI, Banco Santander, HSBC and Mitsubishi UFJ Securities.

Debevoise & Plimpton is advising Northwestern Mutual on the acquisition, led by partner Gregory Gooding and partners Kenneth Berman, Lawrence Cagney and Peter Schuur.

Skadden Arps Slate Meagher & Flom represented Russell Investments in the $2.7bn sale by Northwestern Mutual to the LSEG.