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DOHA: Qatar has upped its stake in its bourse from 80 percent to 88 percent, with NYSE Euronext holding the remaining 12 percent stake.
According to a press statement issued by Qatar Exchange (QE) yesterday, Qatar Holding which had 80 percent stake in the bourse, has bought back eight percent stake from NYSE Euronext.
Qatar Holding is the direct investment arm of Qatar’s strategic sovereign wealth fund, the Qatar Investment Authority (QIA).
Euronext had bought 20 percent stake in the QE in 2009 as part of a five-year strategic agreement to transfer knowledge and develop the Qatari equity market.
The QE statement said the deal was struck last October. “A shareholding restructuring of the company was completed in October 2012. As a result, Qatar Holding now holds 88 percent of the shares and NYSE Euronext maintains a 12 percent investment in Qatar Exchange”.
Since June 2009, Qatar Holding and NYSE Euronext (NYX) have been engaged in a five-year strategic agreement to transfer knowledge and develop Qatar Exchange. “During the last three-and-a-half years, most of the agreements have been successfully executed, positively reflecting on the performance of the exchange and its regional and international ranking.”
“In view of the above, Qatar Holding had expressed desire to increase its stake in QE from 80 percent to 88 percent, consistent with the NYX strategy to obtain greater flexibility for strategic capital deployment , resulting in concluding the shareholders’ restructuring agreement late last October and finalizing all necessary legal relevant procedures”, the QE statement said.
“This change has been reflected in the Articles of Association of the Company, including the number of seats on the QE board allocated for each of the shareholders. Otherwise, there are no changes to the partnership and both shareholders and their commitment to the development of the exchange and Qatar as a financial centre.”
“NYX remains an important partner with the QE and shall continue to provide all the technological support needed to maintain its (QE’s) pioneering status among the financial markets of the region,” the statement concluded.