KCG has announced an agreement to exchange all of its shares in Bats Global Markets in an attempt to create more value for shareholders.
The agreement with General Atlantic means KCG will exchange its 8.9 million shares in Bats Global Markets for all of General Atlantic’s 18.7 million shares and 8.1 million warrants of KCG.
The transaction will see KCG’s total outstanding share count reduced by 18.7 million of 86.2 million, as its outstanding warrants will be reduced from 13.2 million to 5.1 million.
KCG said its tangible book value is estimated to increase as a result of selling its shares in Bats Global Markets.
Daniel Coleman, chief executive officer at KCG, explained the firm believes “the accretive nature of this transaction further strengthens our efforts to create significant value for our shareholders today and for years to come."
The transaction with General Atlantic is expected to close by the end of November.