The Australian Securities Exchange (ASX) is selling its 18.6% stake in trading technology vendor Iress for approximately A$385 million.
The move terminates an 18-year relationship with the vendor, which has contributed to the development of the Exchange's financial trading platform for Australian equities.
ASX’s managing director Dominic Stevens, says: “Iress has been an attractive investment for ASX over many years. But we believe now is the right time to divest as it no longer provides the strategic value to ASX that it once did.
"When ASX invested in Iress's initial public offering in 2000, both ASX and Iress were predominantly focused on servicing the Australian equities market. Since then, both businesses have successfully evolved and expanded.”
UBS' equities desk is handling the sale of ASX's 32.2 million shares, which are being offered at a discount of A$11.95 each to the closing market price of A$13.06.
Iress chief executive Andrew Walsh says: “The ASX has been an Iress shareholder since our initial public offering in 2000. Since that time we have continued to maintain and grow our Australian business in trading, market data and wealth, while also growing into a strong and diversified international technology company."