Kotak to buy 15% stake in MCX for Rs 459 cr
Commex has been valued at a discount to market price; deal is subject to regulatory approvals
Kotak Mahindra Bank has decided to buy a 15 per cent stake in Multi Commodity Exchange (MCX) for Rs 459 crore from Financial Technologies India (FTIL).
The deal values MCX at Rs 600 a share, a discount of nearly 24 per cent to Friday’s closing price of Rs 783.5 on the National Stock Exchange. Also, there is a steep discount to the price at which MCX issued shares to the public in March 2012 (Rs 1,032 a share).
The value of the country’s largest commodity exchange in Kotak’s purchase comes to Rs 3,060 crore; its market capitalisation by Friday’s closing price stands at Rs 3,996 crore.
The deal has to be approved by the Forward Markets Commission (FMC) and the Securities and Exchange Board of India. The former’s approval is seen as procedural, as Kotak Mahindra already owns a commodity exchange (the ACE), while the latter will have to clear FTIL from the lock-in of its 20 per cent stake at the time of MCX’s listing two years ago.
For more visit: Business Standard
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