Soros buys BSE stake from Dubai Financial
Mumbai, August 20, 2010
Billionaire financier George Soros has bought a 4 percent holding in India's Bombay Stock Exchange for about $35 million, two sources with direct knowledge of the deal told Reuters
The deal values the bourse at around $875 million.
Soros' Quantum hedge fund acquired the stake in Asia's oldest exchange from Dubai Financial, part of sovereign fund Dubai Holding, the sources said.
The sources declined to be named as they were not authorised to speak to the media before an expected formal announcement. A spokesman at BSE declined to comment. Officials at Quantum and Dubai Financial could not be immediately reached.
The Economic Times, which also reported the deal on Friday, said Soros bought the stake at around 375-380 rupees a share. Citing unidentified brokers, the newspaper said the growing interest in the exchange was due its reasonable valuations even though the exchange's earnings were under pressure.
In May, Canadian fund manager Urbana Corp had bought 331,000 shares in the exchange at 370 rupees a share, raising its holding to 2.6 percent.
US-based philanthropist George Kaiser also holds around 4 percent of the exchange through his investment firm Argonaut Ventures.
Other major global shareholders in the exchange founded in 1875 include Deutsche Boerse and Singapore stock exchange, both of which have 5 percent each. - Reuters