European exchange operator and transaction services provider, Deutsche Börse, yesterday signed a definitive agreement with the Bombay Stock Exchange (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 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,” says managing director and CEO, Rajnikant Patel. “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 of emerging as the premier Indian stock exchange by establishing global benchmarks,” he continues.
“The strategic partnership with BSE is a very important step for us towards expanding Deutsche Börse’s activities in Asia,” notes Reto Francioni, CEO, Deutsche Börse. “We see the exchange business becoming increasingly global and this partnership represents our joint effort to benefit from each other’s strengths while establishing a presence in multiple time zones and regulatory environments,” he adds.
Ulrich Becker, managing director, corporate development, with responsibility for expanding Deutsche Börse’s Asian business, comments, “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.”