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Dubai: Borse Dubai, the holding company of Dubai Financial Market and Dubai International Financial Exchange, on Friday made a public offer to acquire Nordic exchanges operator OMX AB.
The Dubai firm, through its wholly-owned Swedish subsidiary BD Stockholm, on Friday announced a public all-cash offer to OMX shareholders at 230 Swedish crowns, valuing the Nordic exchange operator at $3.98 billion.
Borse Dubai sees great opportunities in leveraging the strengths of two exchanges. "OMX and its staff, technology, derivatives capabilities and track record in building a successful network of exchanges will enable us together to realise our vision," said Eisa Kazim, chairman of Borse Dubai.
The offer is 13 per cent higher than Nasdaq's cash-and-share offer of 202.3 crowns ($28.89) per share and represents a 38.6 per cent premium to 165.9 crowns per share, the volume weighted average price of OMX shares over the 20 trading days up to and including May 23, the last full trading day prior to the Nasdaq's offer.
Borse Dubai bought ordinary shares of OMX at 230 crowns per share, representing 4.9 per cent of its share capital. Also, a wholly owned subsidiary of Borse Dubai has entered into an option agreement to purchase another 23.5 per cent of OMX ordinary shares.
Borse Dubai's offer also includes mutual representation of members on both companies' boards with the OMX Board having a strong representation from the Nordic region.
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