Citi To Exit MCX, Sell Stake To Ashmore
Citigroup is exiting MCX by selling its 5% stake to Ashmore Plc for $40 Mn. Citi which bought 5% stake in MCX at $45 Mn in 2007 through its arm Citigroup Mauritius Strategic Holdings Ltd is exiting with a loss of 10%.
Citigroup paid Rs 1,050 per share for 1.95 Mn shares in 2007, when the Indian stock market was at the peak and the valuations were too high. The deal valued MCX at $1 Bn , but then after the market crash in 2008 resulting in the decline of valuations.
As per the deal, the commodity exchange had said that if it didnt manage to sell the shares to public by Oct 30, 2008, it would arrange to get a buyer for Citi's stake at a price atleast equal to the subscription price.
But Citigroup Inc, which reported a $7.58 Bn loss in fourth quarter of 2009, is selling its stake in brokerage and asset management businesses worldwide, to cut losses and raise capital.
Citigroup is selling eight bank branches and closing 11 branches in US. It has put its Private Equity business on the block. Citigroup recently sold its electronic trading platform - LavaFX to its rival FXall.
MCX is the electronic commodity futures exchange promoted by Financial Technologies Ltd. Mumbai based MCX started operations in Nov'03. It offers futures trading in more than 40 commodities.
Investments In MCX
| Date | Investor | Size ($ Mn) | Stake |
| Feb'08 | NYSE Euronext | 50.6 | 5.00% |
| Dec'07 |  ICICI Bank | - | 3.55% |
| Dec'07 | IL&FS | - | 5.00% |
| Dec'07 | Kotak India Growth Fund I | - | 1.00% |
| Sept'07 | Merrill Lynch | 50 | 5.00% |
| Sept'07 | GLG Partners | 50 | 5.00% |
Source: Mint
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 13/03/12 | MCX - ICICI Emerging Fund (Exit) | Private Equity | 6.35 | |
| 01/03/12 | Passport Capital - MCX - Bajaj Holdings | Private Equity | Bajaj Holdings & Investment Limited | 25.41 |
| 22/02/12 | Multi Commodity - Anchor Invesments | IPO / Offerings | Credit Suisse | 19.40 |
| 12/09/11 | Multi Commodity Exchange (MCX) - IPO | IPO / Offerings | - | |
| 18/05/10 | MCX - Government Companies | M&A | Looking For | 100.80 |
| 08/03/10 | Fidelity - MCX - Intel | Private Equity | Intel Capital India Technology Fund | 0.15 |
| 25/02/10 | Fidelity - MCX - Passport India | Private Equity | Passport India Investments (Mauritius) Limited | - |
| 03/02/10 | Citigroup-MCX-Ashmore | Private Equity | Ashmore Plc | 40.00 |
| 14/02/08 | Multi Commodity - NYSE Euronext, Inc. | M&A | NYSE Euronext, Inc. | 50.60 |
| 13/12/07 | Multi Commodity - ICICI Bank Ltd., | Private Equity | ICICI Bank Limited | - |
| 28/09/07 | Multi Commodity - Merrill Lynch & | Private Equity | Bank of America Merrill Lynch & Co. Inc. | 160.00 |
| 05/02/06 | Multi Commodity - Fidelity International Ltd. | M&A | Fidelity International Limited | 49.00 |
| 31/07/05 | Multi Commodity - Times Private Treaties | Private Equity | Brand Capital (Formerly Times Private Treaties) | 2.60 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 11/05/12 | M&A | Warburg Pincus International | Future Capital Holdings Limited (Co.) | - | Planned |
| 08/05/12 | M&A | HCL Group | DLF Pramerica Life Insurance Company Limited | - | Planned |
| 08/05/12 | M&A | AEGON | Aegon Religare Life Insurance Company Limited | - | Rumor |
| 02/05/12 | Private Equity | International Finance Corporation | MAS Financial Services Limited | 12.00 | Planned |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Ashmore Plc | Sector Agnostic | www.ashmoregroup.com | ||
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Multi Commodity Exchange of India Limited | Financial Technologies India Limited | CTS No. 255, Exchange Square, Suren Road, Andheri East |
ACE Derivative And Commodity Exchange Limited (Ahmedabad Commodity Exchange Limited) Indian Commodity Exchange Limited International Multi Commodity Exchange National Commodity & Derivatives Exchange Limited National Multi-Commodity Exchange of India Limited Universal Commodity Exchange Limited |
www.mcxindia.com |
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