Fidelity To Sell 2% In MCX To Intel Capital
Fidelity International is selling 2% stake in MCX to Intel Capital (Mauritius) for an undisclosed sum. Post transaction, Fidelity’s stake in MCX will come down to 5%.
Fidelity recently divested 2% stake in MCX to Passport India. The deal size is unknown.
MCX is the leading commodity bourse in the country focusing on metals and energy. In the first half of February, the bourse recorded turnover of around Rs 3.25 lakh crore, or 83%, of the total turnover recorded by the four national and 18 regional bourses over the period.
Transaction Reference: ET
Fidelity had picked up around 9% in MCX in 2006 for $49 Mn, valuing the exchange at around $540 million. When NYSE picked up a 5% stake in MCX in 2008, the exchange was valued at $1.1 Bn.
Citigroup is also selling its 5% stake in MCX to Ashmore Plc for for $40 Mn, valuing $800 Mn. It is exiting with a loss of 10% as it had paid $45 Mn for the 5% stake in 2007.
If a similar valuation is considered than Fidelity could fetch about $16 Mn for the 2% stake.
MCX promoted by Financial Technologies Ltd – is an electronic commodity futures exchange. MCX started operations in Nov’03. It offers trading in more than 40 commodities.
Financial Technologies holds 31% in the bourse. NYSE Euronext (5%), Citi (5%), Merrill Lynch (5%), Passport India (3%), IL&FS (5%), Corporation Bank (4%), SBI & its associate banks (9%), ICICI Group (3%), Nabard (3%), and other banks and financial institutions (18%) are the other shareholders in MCX.
Forward Markets Commission has capped the shareholding in the commodity exchanges. According to the regulations, a single domestic shareholder cannot own more than a 40% stake in new commodity exchanges for five years from the time of launch. This cap on single entity ownership will be reduced to 26% in five years.
The regulations also say that the foreign investors have to reduce their holdings in commodity exchanges to a maximum of 5% by June’10.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 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 |
|---|---|---|---|---|---|
| 02/02/12 | Private Equity | AU Financiers India Private Limited | - | Planned | |
| 01/02/12 | Private Equity | Vontobel Funds Inc | Kotak Mahindra Bank Limited | 174.39 | Completed |
| 01/02/12 | M&A | Kotak Mahindra Bank Limited | Credit Card Portfolio | - | Completed |
| 01/02/12 | Private Equity | Aberdeen Asset Managers Limited | Housing Development Finance Corporation Limited | 275.47 | Completed |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Intel Capital India Technology Fund | 250 | IT/ITES/Technology Outsourcing |
www.intel.com/capital | Takayuki SasakiSarayu SrinivasanAnupam SrivastavaPradeep M TagareVarsha TagareMahesh Vaidya |
| Fidelity International Limited | Sector Agnostic | camp campRavi KrishnaA BudhaniAbrar MirA P LunkadA GoyalA ChordiaVenkata Rajesh Gannamani | ||
| Fidelity International Limited | Sector Agnostic | camp campRavi KrishnaA BudhaniAbrar MirA P LunkadA GoyalA ChordiaVenkata Rajesh Gannamani | ||
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, Mumbai – 400093, India. |
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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