Deutsche Borse signs agreement with BSE

Mumbai, Feb 14 (UNI) Leading European exchange operator and transaction sevices provider, Deutsche Borse today signed a definitive agreement with Bombay Stock Exchange (BSE) to invest in a five per cent stake for Rs 189 crore at a price of Rs 5,200 per share and also to explore ways of strengthening their collective competencies across a broad spectrum of business areas.

The transaction puts the value of BSE at Rs 3,777 crore (USD 854 million).

BSE Chairman Mr Jagdish Kapoor told mediapersons that,''The agreement brings together two institutions of impeccable pedigree and proven capabilities to work towards exploring opportunities to grow the respective exchanges, introduce more cutting edge products in the markets and assist each other in promotional activities in both markets. The issue of shares is subject to releventory and shareholder approvals. Kotak investment Banking advised BSE on the transaction.

Meanwhile, BSE MD Mr Rajnikant Patel stated that,''The alliance is of long term strategic importance designed to achieve several objectives in multiple asset classes in which we found Deutsche Borse to be very strong. This transaction is an important step for BSE towards realising its mission to Emerge as the premier Indian stock exchange by establishing global benchmarks. In terms of profitability and market capitalisaton, Deutsche Borse ranks among the the top exchanges of the world. This is a firm beginning towards bringing the global markets to India.'' MORE UNI