NZX looks at acquiring stake in Australian exchange

Friday 8th May 2009

The board of NSX, an Australian stock exchange for small and medium-sized companies, has recommended to shareholders that NZX be allowed to buy 50.1% of the company.

NZX would acquire the stake through the issue of 78,510,802 new shares at 15 Australian cents apiece, amounting to A$11.78 million.

“NZX is well positioned to create a significantly improved earnings outlook for NSX, and to execute a growth strategy at a low marginal cost that will materially grow the value of NSX to the benefit of both NZX and NSX shareholders,” NZX chief executive Mark Weldon said in a statement.

In the last five years, NSX has “differentiated itself through targeting new products and market offerings for small, high growth businesses,” the two companies said in a statement. Australia has five licensed exchanges; two of these licences are held by NSX – the National Stock Exchange of Australia and the Bendigo Stock Exchange, it said.

There are 74 securities traded on the NSX board, with a market value of A$700 million and 59 on the Bendigo exchange, or BSX, with a market value of A$469 million, according to a December report posted on the NSX website.

NSX listed on the ASX in January 2005 and is regulated by the Australian Securities & Investments Commission.

Its shares last traded at 18 cents, giving it a market value of A$13.4 million. The stock isup 16% in the past week.

The transaction requires the approval of NZX stockholders at a special meeting likely to be in June.

Businesswire.co.nz

Comments from our readers

No comments yet