Deutsche Borse to buy 5% BSE stake

Leading European exchange operator, Deutsche Borse Group, will be picking up a 5 per cent stake in the Bombay Stock Exchange for Rs 189 crore (Rs 1.89 billion).

Both the entities entered into a definitive agreement for the purpose in Mumbai on Wednesday.

Germany's Deutsche Borse Group the stake for Rs 189 crore, which amounts to a price of Rs 5,200 per share.

The transaction values the BSE, as an enterprise, at Rs 3,777 crore (approx $854 million).

As per the agreement signed, both the entities will also explore ways of strengthening their collective competencies across a broad spectrum of business areas.

BSE managing director and CEO Rajnikant Patel told reporters that the BSE is open to tying up with other stock-exchanges as well.