Singapore Exchange Limited (SGX) and Bombay Stock Exchange Limited (BSE) announced today that they have entered into an agreement for SGX to invest in a 5% stake in BSE.
SGX will subscribe to the shares of BSE at Rs 5,200 per share for Rs 189 crore (USD 42.7 million).
The two exchanges have also agreed to actively explore collaboration in various areas relating to listings and product development, leveraging on SGX's leading position as a regional hub for derivatives and international listings and BSE's strong presence in India.
Mr Rajnikant Patel, Managing Director & CEO of BSE said, "This strategic tie-up with SGX will offer the Asian advantage to BSE. SGX is Asia-Pacific's first demutualised and integrated securities and derivatives exchange. They bring a huge amount of learning to this partnership. This partnership will not only be mutually beneficial to both the exchanges, but also complement our association with Deutsche Börse. This alliance will position BSE to be an important player in the increasingly globalised marketplace."
Mr Hsieh Fu Hua, CEO of SGX, said, "We look forward to supporting BSE's goal to strengthen their international position. Together, we aim to identify new business development opportunities and to foster an enduring partnership that is beneficial to both exchanges and our customers. Our investment in BSE is consistent with our strategy of building an Asian Gateway for securities and derivatives products."
The issue of shares is subject to relevant regulatory and shareholder approvals. Kotak Investment Banking advised BSE and UBS Investment Bank acted as financial advisor to SGX in connection with the transaction.