Jignesh Shah-led Financial Technologies sold Singapore Mercantile Exchange and SMX Clearing Corp to Intercontinental Exchange Group’s unit for $150 million to repay its debts towards ECB and forex loan
Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) said its unit has sold its entire stake in Singapore Mercantile Exchange (SMX) to ICE Singapore Holdings Pte Ltd for $150 million.
Following the stake sale announcement, FTIL shares jumped 11% to Rs201.4 on the BSE during the early morning trade Tuesday.
Financial Technologies Singapore Pvt Ltd, (FTSPL), is a unit of FTIL. The Jignesh Shah-led company sold SMX and SMX Clearing Corp (SMXCC) to Intercontinental Exchange Group Inc unit ICE Singapore Holdings.
In a regulatory filing, FTIL said, “We will primarily utilize the amount towards repayment of outstanding debt towards external commercial borrowings (ECB) and foreign currency loan (FCL) to banks subject to regulatory approvals, if any, pursuant to which FTIL will become debt or lien-free.”
The transaction was approved by the board of directors of FTSPL and FTIL on 18 November 2013 with signing of definitive agreements and is subject to certain customary closing conditions and approvals.
The SMX, promoted by FTIL has started its operations from 31 August 2010. SMX operates as an exchange regulated and licensed by the Monetary Authority of Singapore (MAS).
National Spot Exchange Ltd (NSEL) NSEL, promoted by Jignesh Shah-headed Financial Technologies is already being probed by various other regulators and investigative agencies with regard to a Rs5,600-crore payment default and persistent violations of various regulations.
At 3.10pm Tuesday, Financial Technologies was trading 2.9% higher at Rs186 on BSE, while the benchmark Sensex was flat at 20,899.
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