NEW DELHI: Reliance Money, the retail brokerage arm of Reliance Capital, is buying15% stake in Hong Kong Mercantile Exchange (HKMEx). This would be the first time an Indian firm is buying stake in an overseas exchange. The deal comes at a time when the global financial markets are in a state of flux.
ET had first reported that Reliance Money was close to picking up a substantial minority stake in HKMEx, in its edition dated September 6. As reported earlier, HKMEx was keen to sell up to 26% stake to Reliance Money.
Though the deal amount could not be ascertained, sources say the transaction is being struck at around $15 million, which would value the exchange at $100 million.
Reliance Money had recently received government nod to pick up 10% in Ahmedabad-based National Multi-Commodity Exchange of India (NMCE). Reliance Money has stated that it may acquire up to 26% in NMCE.
Reliance Money CEO Sudip Bandyopadhyay confirmed the firm is buying 15% stake in HKMEx. “There is a tremendous opportunity in developing HKMEx as a regional commodity exchange as there is no strong regional commodity bourse in Asia. Moreover, with our exposure in NMCE we would look at building synergies between the two, he said.”
The deal, will make Reliance Money the second-largest shareholder in the commodity exchange and also entitle the firm a board seat in HKMEx.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment