Wednesday, April 4, 2007

Financial Technology sells 1% in Dubai bourse for $12.5 mn

The Dubai Multi Commodities Centre (DMCC) has bought an additional 1 per cent stake in the Dubai Gold and Commodities Exchange (DGCX) from its partner, the Financial Technologies Group, for $12.5 million.

The deal values DGCX, which started operations one and a half years ago, at a whopping $1.25 billion.

The FT Group will now be left with a 49 per cent stake in DGCX. When contacted, FT Group executives declined comment on whether the price paid for the 1 per cent stake reflected change of control and therefore included a control premium.

Market sources say the high valuation for a start-up like DGCX compares well with the valuations of the National Stock Exchange and the Bombay Stock Exchange at $2.3 billion and $910 million, respectively.

DGCX is an electronic futures and options exchange which utilises trading, clearing and settlement technology developed by the FT Group.

Read more in The Business Standard article.

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