Financial Technologies (India) Ltd (FTIL) has confirmed on November 17, 2014 that it has signed a definitive agreement to sell its Mauritius-based exchange for USD 40.5 million (about MUR 1.3 billion) to Continental Africa Holdings Ltd.
Mauritius-based Bourse Africa is an international multi-asset class exchange that offers trading on commodity derivatives, African and global currency derivatives.
The deal is subject to certain customary closing conditions that are expected to be completed within the next 210 days. FTIL decided to exit the exchange business and focus on its core technology business after the INR 5.6 billion (about MUR 2.8 billion) scam surfaced at its Indian subsidiary National Spot Exchange Limited (NSEL) last year.
In a filing to the Bombay Stock Exchange (BSE), Jignesh Shah-led FTIL said the Board of its Mauritius-based subsidiary FT Group Investments Pvt Ltd has “approved the sale of 100 percent of its stake in Bourse Africa Ltd, Mauritius to Continental Africa Holdings Ltd, Mauritius, for USD 40.5 million.”
In the past few months, FTIL has exited from Multi Commodity Exchange (MCX) and IEX.
It has sold its entire 26 per cent stakes in the commodity bourse MCX for about INR 9 billion (about MUR 4.59 billion) and also sold nearly 26 percent stake in IEX for INR 5.7 billion which is about MUR 2.9 billion.
Earlier this year, it had sold its stake in National Bulk Handling Corp for INR 2.4 billion (MUR 1.2 billion). FTIL has been exiting the exchange business after commodity markets regulator Forward Markets Commission (FMC) in December last year declared it to be unfit to run any exchanges in view of the NESL payment crisis.
Source: Financial Express
Image (Live Mint): FTIL, led by Jignesh Shah, has been exiting the exchange business after commodity markets regulator Forward Markets Commission (FMC) in December last year declared it to be unfit to run any exchanges in view of the NSEL payment crisis.
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