Business | Markets
Dubai's LSE stake could go to Qatar
Borse Dubai said on Sunday it has bought Qatar Investment Authority's (QIA) stake in Nordic exchange operator OMX and it would consider any future offer from Qatar to buy its stake in London Stock Exchange (LSE).
- By Babu Das Augustine, Banking Editor
- Published: 00:08 February 18, 2008
Dubai: Borse Dubai said on Sunday it has bought Qatar Investment Authority's (QIA) stake in Nordic exchange operator OMX and it would consider any future offer from Qatar to buy its stake in London Stock Exchange (LSE).
While confirming the acquisition of Qatar's 10 per cent stake in OMX, Borse Dubai said the company has not reached any deal to sell Borse Dubai's stake in LSE to Qatar in exchange for OMX shares.
"There has been no deal on this whatsoever. Qatar has agreed to sell their shares in OMX to us. In the future if they show interest in our shareholding in LSE, we may consider their offer," said Soud Ba'alawy, Borse Dubai's vice-chairman.
"Selling LSE shares is not in our short-term horizon. There has been no offer and there is no need to sell it now, the share is doing extremely well," added Eisa Kazim, chairman of Borse Dubai.
In September, Borse Dubai bought a 28 per cent stake in the LSE as part of a series of complex deals between Nasdaq and Borse Dubai, which paved the way for a joint bid by the Dubai firm and Nasdaq for OMX.
Although Qatar failed to acquire Nasdaq's stake in LSE, it bought about 20 per cent stake in the London bourse. Both groups' stakes have since been diluted, following the LSE's merger with Borsa Italiana. Borse Dubai now holds 22 per cent and QIA owns 15 per cent.
Senior Borse Dubai executives said that shareholders have already committed to sell 97.6 per cent stake in OMX to Borse Dubai.
The OMX acquisition deal is expected to be completed by February 29.
Under the OMX deal, Nasdaq agreed to take a 33 per cent stake in the DIFX. The exchange, to be re-branded as Nasdaq DIFX, plans to expand in the Middle East, Africa and Asia.
While Nasdaq OMX will lead Nasdaq's European and trans-Atlantic consolidation plans, Nasdaq DIFX will spearhead consolidation plans in the Middle East, Asia and Africa.
"The exchange consolidation in this region will be largely driven by strategic arrangements rather than mergers and acquisitions. The demutualisation of stock exchanges happening across the region will help us to get our foothold in other regional markets," said Kazim.
Timeline: Anatomy of OMX accord
May 25: Nasdaq announces 208.1 crown offer for OMX.
August 9: Borse Dubai acquires 4.9 per cent in OMX in addition to 22.5 per cent through options.
August 17: Borse Dubai makes 230 crown offer for OMX.
September 20: Nasdaq and Borse Dubai makes combined bid for OMX. As a result, Nasdaq agrees to merge with OMX and Borse Dubai to get 19.99 per cent in Nasdaq. In addition, Borse Dubai acquires 28 per cent stake in LSE.
September 26: Borse Dubai raises offer price to 265 crowns.
February 15: Borse Dubai acquires 68.6 per cent in OMX.
February 17: A total of 97.6 per cent shares tendered to Borse Dubai.
February 29: Borse Dubai to complete the deal.
March: Nasdaq takes 33 per cent stake in Borse Dubai and DIFX to be rebranded as Nasdaq DIFX.
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