Dubai: Merger talks between Nasdaq Dubai and Dubai Financial Market (DFM) will be finalised within two weeks, DFM's executive chairman Eisa Kazim told reporters yesterday.
The entities are waiting for regulatory approval from the Dubai Financial Services Authority and Emirates Securities and Commodities Authority.
Approval is in the "very final stages," Kazim said.
"We never set any date on when we are going to finalise the consolidation. However, we have given an indication on when we are going to conclude the deal between the three parties — bourse Dubai, Nasdaq OMX, DFM — and that should be done in a week's time or two weeks," Kazim said on the sidelines of a DFM press conference yesterday.
Late last year, DFM offered to buy out Nasdaq Dubai for $121 million (Dh444 million), in a drive to widen the asset base for investors on the exchange. The deal comprises $102 million in cash and 40 million DFM shares.
Changes posted
Nasdaq Dubai, which will remain as a brand, has currently 17 securities listed. Nasdaq Dubai's reported equity trading volumes rose by 30 per cent in 2009 to 3.1 billion shares, up from 2.39 billion in 2008.
The Dubai exchange has already posted the changes on its website and is waiting for the 28-day period for brokers and other market participants to adapt to the change. Moreover, the companies listed on Nasdaq and trading in dollars might change to dirhams as they trade on one platform after the merger, Kazim said.
"Companies would have the choice to be quoted in the dirham or US dollar. However, some would prefer to change it to the dirham because the retail base of DFM is more familiar [tracking] the dirham rather than the dollar," he said.
New companies listing on the merged platform will also have the choice in following either ESCA or DFSA regulations.
