NYSE buys 5% stake in NSE

New Delhi, Jan 10 (UNI) New York Stock Exchange (NYSE) today signed a definitive agreement to acquire a 5 per cent equity position in the National Stock Exchange of India Ltd (NSE), the maximum investment permitted by a foreign investor in a stock exchange under the securities laws of India, for 115 million dollars in cash.

NYSE Group will purchase the shares of NSE from a consortium of selling shareholders, including ICICI Bank, Industrial Finance Corporation of India Ltd, IL&FS Trust Company Ltd, Punjab National Bank, and General Insurance Corporation of India.

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.

''Our investment in National Stock Exchange complements our global growth strategy,'' said NYSE Group Chief Executive Officer John A Thain.

''Mr Ravi Narain leads a growth oriented organisation 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,'' he added.

NYSE Group Chief Financial Officer and Executive Vice President Nelson Chai said, ''The potential opportunities are very exciting.'' NYSE is confident that the entities can work together to create value for shareholders, and identify new opportunities in listings, trading and product development, he added.

''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,'' NSE Managing Director and Chief Executive Officer Ravi Narain said.

The NYSE, subsidiary of NYSE Group, lists 10 companies from India whose total global market capitalisation is approximately 76 billion dollars.

Merrill Lynch&Co acted as financial advisor to NYSE Group on the transaction.

The group operates two securities exchanges -- the New York Stock Exchange LLC (NYSE) and NYSE Arca Inc (formerly known as the Pacific Exchange).

In 2006, on an average trading day, 2.3 billion shares, valued at 86.8 billion dollars, were traded on both the exchanges.

UNI