BSE will issue 3.5 lakh-odd fresh equity shares to SGX at Rs 5,200 per share - the same price paid by Frankfurt-based Deutsche Boerse last month. The deal values the exchange, the oldest stock exchange in Asia, at $ 855 million.
"The strategic tie-up with SGX will give us an Asian edge as we see a lot of synergy in terms of strength to leverage our partnership with SGX. The partnership will not only be mutually beneficial but also complement our association with Deutsche Boerse. This alliance will position BSE as an important player in the increasing globalised market," Rajnikant Patel, managing director & CEO, BSE, said.
"Together, we plan to identify new business oppurtunities and foster an enduring partnership that is beneficial to both exchanges. Our investment in BSE is consisitent with our strategy of building an Asian gateway for securities and derivatives products," Hsieh Fu Hua, CEO, Singaopore Stock Exchange, said.
Earlier, New York Stock Exchange (NYSE) had acquired 5% in National Stock Exchange (NSE) for $115 million valuing NSE at $2.3 billion.
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