NEW DELHI: Reliance Money, the brokerage company of Reliance Capital, is in advanced stages of negotiations to pick up a majority stake in an upcoming commodity and currency trading exchange in Nigeria. This comes close on the heels of the R-ADAG firm picking up a 15% equity stake in Hong Kong Mercantile Exchange(HKMEx).
The proposed Nigerian exchange is expected to start trading by the second quarter of 2009. It would begin with commodity and currency contracts and may eventually evolve as a full-fledged trading exchange offering equity trading as well.
While Reliance Money would hold the majority stake, local business groups would be brought in as minority partners in the venture. Unlike HKMEx, where the local government has a stake, the Nigerian exchange would be a private enterprise.
When contacted by ET, Reliance Money CEO Sudip Bandyopadhyay said: “We are looking at various growth opportunities abroad. We will announce them as and when we finalise something.” There is already a stock exchange in Lagos.
The deal would mean an expansion of operations in Nigeria for Reliance Money. Earlier this year, the company had entered into a tie-up with Lagos-based industrial group — the Chellarams, for distribution of financial products and services.
The transaction is part of the global expansion strategy of Reliance Money, which is also in the process of starting full-fledged financial services operations through a JV in Saudi Arabia and has plans to expand its business in over 15 countries spread across Europe, North Africa, the Middle East and South East Asia by March 2009.
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