Mumbai: The Bombay Stock Exchange Ltd (BSE) said on 14 February it will issue a 5% fresh capital stake to Germany’s Deutsche Boerse with the deal valued at $910 million. The German bourse paid Rs 189 crore for the stake. The BSE was valued at $910 million.
“I think it is a fair value,” BSE chief executive officer Rajnikant Patel told reporters.This effort by Deutsche Boerse is the latest in a wave of consolidation efforts among the world’s exchanges.The BSE intends to reduce the stake held by its brokers by offering 26% to strategic investors and a further 25% through an IPO.
Any one strategic investor’s stake is limited to 5%.The Singapore Stock Exchange is also interested in taking a stake in Bomaby Stock Exchange.
Nasdaq Stock Market Inc. and the London Stock Exchange are also in the running.The NYSE Group Inc.in January paid $115 million for 5% of BSE’s rival, the National Stock Exchange.
Private equity firm General Atlantic, SoftBank Asian Infrastructure Fund and investment bank Goldman Sachs also bought 5% each.The feverish interest in India’s vibrant stock exchanges is the latest in a wave of consolidation attempts among exchanges around the world as the volume of trade soars.The London Stock Exchange is expected to seek alliances with other bourses such as Tokyo after the Nasdaq Stock Market failed to take it over in a $5.3 billion bid.