PHOTO
An Emirates NBD counter is seen as traders monitor stocks at the Dubai Financial Market at Dubai World Trade Center, February 2, 2012. Image for illustrative purposes.
Borse Dubai Ltd., the largest single shareholder in Nasdaq Inc., plans to sell a part its stake in a secondary share offering, raising close to $1.6 billion.
Borse Dubai is selling 26.96 million shares of the US exchange operator's common stock at $59 per share, reducing its stake to around 10.8%, according to two statements on the exchange's website.
The exchange will grant the underwriters a 30-day option to purchase up to 4,043,478 additional shares of Nasdaq’s common stock.
The offering is expected to close on March 22.
Borse Dubai intends to agree to an 18-month lock-up of its remaining shares controlled by Nasdaq, and provided it continues to own at least 10% of Nasdaq’s outstanding stock, the bourse can designate a nominee to Nasdaq’s board.
After completion of the sale, Borse Dubai will be Nasdaq’s second-largest shareholder. According to Reuters, US private equity firm Thoma Bravo will become the largest shareholder, with a 12.5% stake.
Essa Kazim, Chairman and CEO, Borse Dubai said the offering is being conducted to enhance the capital structure and liquidity within the Borse Dubai Group.
"We have not only been a shareholder in Nasdaq for the past 16 years, but Nasdaq is also a key technology and brand partner for our exchange group and we believe in the strategic vision for the company."
Borse Dubai is 60% owned by the Investment Corporation of Dubai, 20% by Dubai Group LLC (a member of the Dubai Holding Group) and 20% by DIFC Investments LLC.
Morgan Stanley and Goldman Sachs & Co. LLC are acting as joint lead book-running managers for the offering. J.P. Morgan is acting as capital markets advisor to Nasdaq.
(Reporting by Brinda Darasha; editing by Seban Scaria)
