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NYSE Euronext sells its stake in NSE of India
07 June 2010
NYSE Euronext’s chief operating officer Lawrence Leibowitz said on May 4 it had sold its 5% stake in the National Stock Exchange of India for gross proceeds of $175m after the stake failed to produce strategic benefits. The buyer is Temasek Holdings, the Singaporean government investment company.
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NYSE Euronext
NSE
Temasek
Lawrence Leibowitz
NYSE
bought the stake in 2007 for $115m. “When we first made the investment, we
thought of it as a strategic investment. What we found over time was that there
weren’t a lot of strategic avenues open to us with NSE,” Leibowitz said.
He
said that once it became obvious that the 5% holding was not opening the doors
NYSE Euronext had hoped for, it decided to take action.
“We
had a lot of respect for the management there. They run a very good business,”
he said. “But it looked to us like it was turning into just a financial
investment, at which point we said, ‘Well, that’s not the business we’re in.’
We decided that the best use of our capital would be to cash out and pay down
the debt.”