Dubai Financial Markets to buy rival Nasdaq Dubai for $121 million
22 Dec 2009
Stock market operator Dubai Financial Markets (DFM) will acquire local rival Nasdaq Dubai for $121 million to create the most powerful capital market hub in the Gulf Cooperation Council (GCC) and the Middle East.
DFM will pay $102 million in cash and 40 million shares to Borse Dubai and Nasdaq OMX Group, the joint owners of Nasdaq Dubai, DBM said in a statement.
The Nasdaq OMX stake in DFM will not require issuance of new shares as 40 million shares will be transferred from DFM's existing treasury shares and the other 40 million shares will be purchased from Borse Dubai, it said.
The transaction would widen DFM's asset classes for investors and allow the company's shareholders to benefit from the future growth of Nasdaq Dubai.
Nasdaq OMX will continue to allow Nasdaq Dubai to use its brand and technology. The group will continue to be involved in Nasdaq Dubai, and will have representation on Nasdaq Dubai's board of directors.
In February 2008, Nasdaq OMX had acquired a third of Nasdaq Dubai as part of an agreement with Borse Dubai, after both bourses were battling to acquire Nordic exchange operator OMX AB. Borse Dubai owns the remaining stake in Nasdaq Dubai.
