STOCKHOLM, Sweden, Dec. 9, 2002 (PRIMEZONE) -- The creation of the new derivatives business, EDX London, together with London Stock Exchange (see joint release as of today) is expected to have the following financial effects for OM (Other OTC:OMGPF) (Stockholm:OM).
OM and London Stock Exchange will establish EDX London with OM holding 24 per cent and London Stock Exchange holding 76 per cent respectively of the voting and share capital. At completion, EDX London will make a payment in cash of approximately SEK 340m (24m pounds) to OM as consideration for the transfer of OM London Exchange's equity derivatives business. OM and London Stock Exchange will in proportion to its holdings capitalise EDX London.
For OM, the net income effect from the transaction is expected to be approximately SEK 190m (13.6m pounds) in 2003.
In addition to OM receiving future earnings from its 24 per cent ownership in EDX London, Stockholmsborsen will, according to the agreement, receive an annual contribution from EDX London's future revenues from Swedish derivatives.
Assuming the same revenue and cost levels for OM London Exchange's equity derivatives business as in 2002, the effect on OM's operating earnings is expected to be neutral following the creation of EDX London. This includes the annual contribution from EDX London's future revenues from Swedish derivatives, and excludes the result from the transaction as well as revenue effects from OM's technology operations following systems sale and facility management services to EDX London and London Stock Exchange.
For further information or comments, please contact:
Jakob Hakanson, VP, Investor Relations, OM, Tel: +46 8 4056042
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