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Temasek to Buy 5% of National Stock Exchange of India (Update1)
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By Lars Klemming and Netty Ismail
May 4 (Bloomberg) -- Temasek Holdings Pte is buying a 5 percent stake in the National Stock Exchange of India Ltd. from NYSE Euronext to tap the country’s economic expansion.
The Singapore state-owned investment company is paying between $150 million and $180 million for the stake in the Mumbai-based exchange, said a person with knowledge of the deal, asking not to be identified because the information is private.
This is Temasek’s second investment in India in less than a month. The company, which manages about S$172 billion ($126 billion) of holdings, agreed last month to buy a stake for $200 million in India’s GMR Energy Ltd. to tap growing demand for power in the world’s second-fastest growing major economy.
“We see our investment in NSE as a good proxy to India’s economic growth and the development of its capital markets,” Manish Kejriwal, senior managing director at Temasek, said in a statement. “Temasek continues to focus on investments in India and believes in its long-term potential.”
Richard Adamonis, a spokesman for NYSE Euronext, the largest U.S. stock exchange owner by total market share, said by phone the New York-based firm sold the stake to Temasek. Adamonis and Jeffrey Fang, a spokesman for Temasek, declined to provide details on the value of the transaction.
India’s Sensitive Index has more than doubled in the past year, bolstering overseas investors’ appetites for the nation’s stocks, and investment banking fees are set to rise in 2010 as the government plans to sell a record 400 billion rupees ($9 billion) of assets and takeovers accelerate.
Foreign Investment
The National Stock Exchange sold a 5 percent stake to NYSE for $115 million in January 2007. Goldman Sachs Group Inc., General Atlantic LLC and Softbank Asian Infrastructure Fund also purchased 5 percent stakes at that time for undisclosed prices.
Foreign investment in the nation’s bonds and equities reached record highs last month, exchange data show, as companies including Infosys Technologies Ltd., India’s second- largest software services provider, posted earnings for the last quarter that met or exceeded the projections of analysts surveyed by Bloomberg.
Foreign holdings of India’s stocks and bonds reached all- time highs of $79.1 billion and $13.1 billion, respectively, on April 27, according to data from the Securities and Exchange Board of India.
The $1.2 trillion South Asian economy will grow at least 8 percent in the financial year that started April 1, compared with an estimated 7.2 percent in the previous 12 months, the central bank said April 20.
Temasek’s purchase has received the necessary regulatory approvals, according to the statement.
There were 1,470 companies listed on the exchange with a combined market capitalization of about $1.3 trillion as of March, according to the statement.
To contact the reporter on this story: Netty Ismail in Singapore [email protected]
Last Updated: May 3, 2010 22:38 EDT
Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Lars Klemming and Netty Ismail
May 4 (Bloomberg) -- Temasek Holdings Pte is buying a 5 percent stake in the National Stock Exchange of India Ltd. from NYSE Euronext to tap the country’s economic expansion.
The Singapore state-owned investment company is paying between $150 million and $180 million for the stake in the Mumbai-based exchange, said a person with knowledge of the deal, asking not to be identified because the information is private.
This is Temasek’s second investment in India in less than a month. The company, which manages about S$172 billion ($126 billion) of holdings, agreed last month to buy a stake for $200 million in India’s GMR Energy Ltd. to tap growing demand for power in the world’s second-fastest growing major economy.
“We see our investment in NSE as a good proxy to India’s economic growth and the development of its capital markets,” Manish Kejriwal, senior managing director at Temasek, said in a statement. “Temasek continues to focus on investments in India and believes in its long-term potential.”
Richard Adamonis, a spokesman for NYSE Euronext, the largest U.S. stock exchange owner by total market share, said by phone the New York-based firm sold the stake to Temasek. Adamonis and Jeffrey Fang, a spokesman for Temasek, declined to provide details on the value of the transaction.
India’s Sensitive Index has more than doubled in the past year, bolstering overseas investors’ appetites for the nation’s stocks, and investment banking fees are set to rise in 2010 as the government plans to sell a record 400 billion rupees ($9 billion) of assets and takeovers accelerate.
Foreign Investment
The National Stock Exchange sold a 5 percent stake to NYSE for $115 million in January 2007. Goldman Sachs Group Inc., General Atlantic LLC and Softbank Asian Infrastructure Fund also purchased 5 percent stakes at that time for undisclosed prices.
Foreign investment in the nation’s bonds and equities reached record highs last month, exchange data show, as companies including Infosys Technologies Ltd., India’s second- largest software services provider, posted earnings for the last quarter that met or exceeded the projections of analysts surveyed by Bloomberg.
Foreign holdings of India’s stocks and bonds reached all- time highs of $79.1 billion and $13.1 billion, respectively, on April 27, according to data from the Securities and Exchange Board of India.
The $1.2 trillion South Asian economy will grow at least 8 percent in the financial year that started April 1, compared with an estimated 7.2 percent in the previous 12 months, the central bank said April 20.
Temasek’s purchase has received the necessary regulatory approvals, according to the statement.
There were 1,470 companies listed on the exchange with a combined market capitalization of about $1.3 trillion as of March, according to the statement.
To contact the reporter on this story: Netty Ismail in Singapore [email protected]
Last Updated: May 3, 2010 22:38 EDT
