LONDON: London Stock Exchange Group emerged from what was a troubling 2017 with a 47 percent profit jump despite turgid markets, helping to ease lingering concern over management upheaval and its aborted Deutsche Boerse merger.
The exchange also said that hosting an expected initial public offering of part of Saudi Aramco remains “a focus.”
The company has come under fire from activist investor TCI over the departure of CEO Xavier Rolet in the wake of the collapsed Deutsche Boerse deal but was able to offer a more upbeat message on Friday with full-year results buoyed by record volumes across multiple clearing services and company flotations that hit a three-year high.
Though interim chief David Warren ruled himself out as permanent CEO, the company said it had made “good progress” in its search from a “strong field of high-quality candidates.”
Without a permanent chief executive LSE could be more vulnerable to a potential takeover. TCI, which holds a 5.17 percent stake in LSE, has predicted a 15 billion pound ($20.7 billion) bid for the group from transatlantic rivals ICE and CME Group.
In a conference call with reporters, Warren declined to comment on takeover bids but said that LSE was confident in its standalone prospects.
“I have strong ambition ... to continue in this interim role as the search goes on. (Beyond that) I remain firmly committed to remaining as CFO,” he added.
Warren declined to comment on a timeline for any appointment and did not say whether LSE had spoken to TCI about candidates.
TCI had sought the removal of chairman Donald Brydon over the handling of Rolet’s departure. The former CEO stepped down in November after nearly a decade in the role, during which he transformed the company with a string of deals, lifting its market value from less than £1 billion ($1.4 billion) to almost £14 billion.
Whoever takes over as CEO will be charged with leading LSE’s efforts to woo oil giant Saudi Aramco to London for what is widely expected to be the world’s largest initial public offering.
“It’s very much in our interest to do this. I think there is a lot about London which is very, very attractive ... It certainly has been a focus and continues to be,” Warren said.
Attracting Saudi Aramco IPO still ‘a focus’ for London exchange
Attracting Saudi Aramco IPO still ‘a focus’ for London exchange
Finance minister announces launch of National Privatization Strategy
RIYADH: Saudi Arabia’s Minister of Finance and Chairman of the National Center for Privatization Mohammed bin Abdullah Al-Jadaan highlighted the Council of Economic and Development Affairs’ approval to conclude the Kingdom’s privatization program, noting that it had successfully completed its initiatives in line with the approved plan.
Al-Jadaan explained that since its launch, the privatization program has achieved a number of milestones, most notably the establishment of the NCP, which has created over 200 approved projects with total investments estimated at SR800 billion ($213.4 billion).
The program, he added, has also facilitated the signing of nearly 90 contracts, ranging from ownership transfer agreements to public-private partnership deals across multiple sectors.
In addition, it has contributed to strengthening the role of the private sector, improving the efficiency of government asset operations, and developing a legislative and regulatory environment that supports investment, thereby promoting economic diversification and enhancing the Kingdom’s competitiveness.
The minister announced the launch of the National Privatization Strategy, which was approved by the Council of Ministers on Nov. 25.
The initiative aims to enhance the quality and efficiency of infrastructure, improve public services for the Kingdom’s residents, strengthen the private sector’s role in sustainable economic development, and enable the government to focus on its legislative, supervisory, and regulatory functions, while reinforcing financial sustainability, all in line with the country’s Vision 2030.
Al-Jadaan said: “Saudi Arabia seeks to establish a high-quality, efficient future infrastructure capable of delivering world-class public services to citizens, residents, and visitors, while reinforcing the Kingdom’s position as a global reference in public-private partnerships.”
The strategy aims to raise satisfaction levels with public services across 18 target sectors, create tens of thousands of specialized jobs, exceed 220 public-private partnership contracts by 2030, and increase private sector capital investments to more than SR240 billion by 2030.
The NPS has established five main programs to empower and advance the privatization system, along with 42 executive initiatives to achieve its objectives and the Vision 2030 targets related to privatization.
It also includes an executive program dedicated to identifying and prioritizing key privatization opportunities, with over 145 high-priority opportunities already identified, representing attractive investment prospects for the private sector.
