Business | Markets
Strategic investors buy into DME
The Dubai Mercantile Exchange (DME), a commodities and energy exchange jointly owned by the Oman Investment Fund, Tatweer, a member of Dubai Holding, and the New York Mercantile Exchange said yesterday that it has sold 20 per cent equity stake to strategic investors.
- By Babu Das Augustine, Banking Editor
- Published: 10:38 August 11, 2008
- Image Credit:
Dubai: The Dubai Mercantile Exchange (DME), a commodities and energy exchange jointly owned by the Oman Investment Fund, Tatweer, a member of Dubai Holding, and the New York Mercantile Exchange said yesterday that it has sold 20 per cent equity stake to strategic investors.
The DME's new shareholders will include Goldman Sachs, Morgan Stanley, Vitol, Concord Energy, Casa Energy Trading, and a company belonging to the Shell Group.
"The terms of the equity participation between the parties remain private and confidential," the bourse said in a statement.
Welcoming the new shareholders, Ahmad Sharaf, Chairman of the DME, said: "They rank among the world's most successful and sophisticated financial institutions and energy trading firms and their vote of confidence in the Exchange is indicative of the success the DME has achieved to date."
Speaking to the media during a teleconference yesterday Sharaf said that the sale of equity will result in dilution of share holdings of founding shareholders Tatweer, Oman Investment Fund and Nymex to 25 per cent each. However, he did not specify the individual holdings of the new shareholders.
DME officials said that the equity participation by some of the leading international financial institutions energy companies would enhance the volume of transactions and the liquidity on the bourse.
"Our new shareholders are big players in the global market place and we expect this partnership to enhance our volumes, liquidity and reach to wider geographic regions," said Tom Leaver, Chief Operations Officer of DME.
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