Source: Deutsche Börse
Leading European exchange operator and transaction services provider, Deutsche Börse, today signed a definitive agreement with BSE to invest in a 5 percent stake for Rs 189 crore at a price of Rs 5,200 per share (USD 42.7 million), and also to explore ways of strengthening their collective competencies across a broad spectrum of business areas.
The transaction puts the value of BSE of Rs 3,777 crore (USD 854 million).
The agreement brings together two institutions of impeccable pedigree and proven capabilities to work towards exploring opportunities to grow the respective exchanges, introduce more cutting edge products in the markets and assist each other in promotional activities in both markets.
The issue of shares is subject to relevant regulatory and shareholder approvals. Kotak Investment Banking advised BSE on the transaction.
"We are delighted to be partnering with Deutsche Börse. The alliance is of long-term strategic importance designed to achieve several objectives in multiple asset classes in which we found Deutsche Börse to be very strong. This transaction is an important step for BSE towards realising its mission to 'Emerge as the premier Indian stock exchange by establishing global benchmarks'. In terms of business, profitability and market capitalisation, Deutsche Börse ranks among the top exchanges of the world. This is a firm beginning towards bringing the global markets to India," said BSE Managing director and CEO, Mr Rajnikant Patel.
"The strategic partnership with BSE is a very important step for us towards expanding Deutsche Börse's activities in Asia. We see the exchange business becoming increasing global and this partnership is our joint effort to benefit from each other's strengths while establishing a presence in multiple time zones and regulatory environments," said Deutsche Börse CEO, Mr Reto Francioni.
Ulrich Becker, Managing Director Corporate Development and in-charge for building out Deutsche Börse's Asian business said: "We see India as one of our key growth areas. We look forward to a long and mutually beneficial alliance with BSE to tap the enormous potential in the Indian and Asian markets. Our strong technology, product portfolio and global customer network combined with BSE's strong presence and brand name in India will help us work together to grow our business significantly."