NEW DELHI (AP) – The New York Stock Exchange and three other overseas investors have signed an agreement to collectively buy a 20 percent stake in India's National Stock Exchange, the exchanges said Jan. 10.
The New York Stock Exchange Group, investment bank Goldman Sachs, private equity firm General Atlantic and Japan's Softbank Asian Infrastructure Fund will each buy five percent stakes from a consortium of Indian shareholders, the National Stock Exchange said in a statement.
The statement did not disclose financial details of the deal, but the NYSE said in a statement that it is paying $115 million for its share. The deal follows a recent decision by the Indian government to allow foreign investment in stock exchanges.
“Our investment in India's National Stock Exchange complements our global growth strategy,” NYSE chief executive officer John A. Thain said in the statement. “Through a mutually beneficial partnership, the NSE and NYSE Group, and the future NYSE Euronext, will extend our global reach.”
Attempting to create a global financial exchange group, NYSE Group is in the process of acquiring Euronext NV. Its proposed investment in the NSE is of significant strategic importance for the Indian stock exchanges and capital markets, the statement said.
Ravi Narain, chief executive of the Indian exchange, called it a “timely partnership” that “marks a significant milestone for NSE in developing a place for itself in the emerging global scenario.”
The consortium of sellers includes five Indian financial institutions: ICICI Bank Ltd., Industrial Finance Corp. of India Ltd., Punjab National Bank, Infrastructure Leasing & Financial Services Ltd. and General Insurance Corp. of India.