Reliance Money picks up stake in Hong Kong Mercantile Exchange
16 Oct 2008
Mumbai: Anil Ambani-controlled Reliance Money, the retail brokerage arm of Reliance Capital, has picked up a 15 per cent stake in the Hong Kong Mercantile Exchange (HKMEx). This makes it the first Indian firm to acquire a stake in an international exchange. The deal comes at a time when the global financial markets are in a state of flux. While the exact value of the deal could not be ascertained sources say the transaction is being struck at around $15 million, which would value the exchange at $100 million.
With this Reliance Money has become the second-largest shareholder in the commodity exchange and will have a board membership.
"Even as Asia has emerged as a key market for global commodities, the region does not have a strong commodity exchange. We believe that our deal with HKMEx will help us capitalise on the growing demand for commodities in this region," Reliance Money's director and CEO, Sudip Bandyopadhyay, said in a press release issued here.
Reliance Money recently received approval from the FMC and Ministry of Consumer Affairs for acquiring a 10 per cent stake in the National Multi-Commodity Exchange of India. The Anil Ambani controlled company plans to hike this stake to stake to 26 per cent later.
Bandopadhyay said, ''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.''
