US Nasdaq may acquire 7 percent of Borsa Istanbul

Hülya Güler ISTANBUL – Hürriyet

The preliminary deal between Nasdaq and Borsa Istanbul is still being negotiated and is awaitig the opions of the Turkey’s Capital Market Board. REUTERS photo

American finance giant Nasdaq OMX Group plans to pay $30 million for a 7 percent share of Borsa Istanbul (BIST), and to give 1 or 2 percent in shares from its technology company, according to a draft of the preliminary deal seen by daily Hürriyet. 

Nasdaq and Borsa Istanbul signed the partnership deal in July, but detailed terms of the alliance were under cover.

The preliminary deal, which is still under the negotiation process, foresees the transfer of 7 percent of the shares of Turkey’s sole stock exchange to the U.S. giant, which indicates that the parties calculated the market value of BIST at more than $430 million. 

In return, BIST will acquire around 1 or 2 percent of Nasdaq’s technology firm, Market Technology, but the sides have reportedly not reached a consensus on that part of the deal. 

When the value of Market Technology’s shares add up to $430 million, the overall worth of BIST has apparently been forecasted to be between 1 and 1.3 billion Turkish Liras.

Tech-based cooperation

The deal is still subject to the approval of Turkey’s Capital Markets Board (SPK), which is currently reviewing the deal terms.

Negotiations will proceed according to the SPK’s opinions and suggestions.

Sources close to the matter expect the deal to be completed by the end of this month, so all eyes are now turned to the Istanbul finance summit, which will be attended by Nasdaq Vice Chairman Sandy Meyer Frucher. 

Sector players say Frucher’s visit could be a proper occasion for signing off the deal or talking over the final details. 

Borsa Istanbul will integrate and operate Nasdaq OMX’s market technologies for trading, clearing, market surveillance and risk management, covering all asset classes including energy contracts, with the deal, the sides had said during the announcement of the alliance.

The deal is a cornerstone for expanding the Istanbul exchange’s global presence, while strengthening its position as a regional hub for capital markets.

Turkey merged the Istanbul Stock Exchange, Gold Exchange and Derivatives Exchange into Borsa Istanbul this year ahead of a planned privatization, as it seeks to attract growing trade from the world’s leading investment banks and brokers.

State-owned Borsa Istanbul will be ready to list its shares in early 2016, BIST Chairman İbrahim Turhan had said.