New York Stock Exchange Group buys 5 pc equity in NSE for USD 115 mn

Mumbai, Jan 10 (UNI) NYSE (New York Stock Exchange) Group, Inc today announced that it has signed a definitive agreement to acquire a five per cent equity stake in the Mumbai based National Stock Exchange of India Limited (NSE), the maximum investment permitted by a foreign investor in a stock exchange under the securities laws of India.

NYSE Group will purchase the shares of NSE for USD 115 million in cash from a consortium of selling shareholders, including ICICI Bank Limited, Industrial Finance Corporation of India Limited, IL&FS Trust Company Limited, Punjab National Bank and General Insurance Corporation of India, a NSE release here said.

The closing of the transaction is expected to take place during the first quarter of 2007, subject to obtaining certain approvals from various government agencies in India.

Representing NYSE Group at an agreement signing ceremony in Delhi today were - James J McNulty, a member of the NYSE Group Board of Directors and former President&Chief Executive Officer of the Chicago Mercantile Exchange and Nelson Chai, NYSE Group Chief Financial Officer and Executive Vice President, the release said.

''Our investment in India's National Stock Exchange complements our global growth strategy,'' Mr John A Thain, Chief Executive Officer, NYSE Group said. ''The National Stock Exchange shares our global vision. Mr Ravi Narain leads a growth oriented organization with a talented, innovative and proven management team. Through a mutually beneficial partnership, the NSE and NYSE Group and the future NYSE Euronext will extend our global reach, strengthen relationships with customers, and advance our competitive position in India and throughout the region.'' Commenting Nelson Chai of NYSE said ''The NSE is India's largest multi-asset exchange and a leader in equities, derivatives and fixed income markets. We are confident that we can work together to create value for our respective shareholders and identify new opportunities in listings, trading and product development. The potential opportunities are very exciting.'' ''We are pleased to welcome the NYSE group as an important stakeholder in NSE,'' Ravi Narain, Managing Director and Chief Executive Officer of NSE said. ''In a rapidly integrating world of financial markets, this timely partnership brings together the strengths of institutions from North America, Europe and Asia. This alliance marks a significant milestone for NSE in developing a place for itself in the emerging global scenario.'' On NYSE Group's investment in the NSE, Jean-Frangois Thiodore, Euronext NV Chief Executive Officer said ''This investment reflects the commitment that NYSE Group and Euronext have already made to develop NYSE Euronext on an international scale. Euronext fully supports this transaction.'' Currently, the New York Stock Exchange subsidiary of NYSE Group lists 10 companies from India whose total global market capitalization is approximately USD 76 billion. Merrill Lynch and Co acted as financial advisor to NYSE Group in the transaction.

UNI