Skip to content

Kaiser, Caldwell acquire stake in BSE

Despite Dubai Financial Group calling off its plans to sell stake in the Bombay Stock Exchange (BSE), Toronto-based investment broker Thomas Caldwell and philanthropist George Kaiser have managed to acquire shares in Asia’s oldest bourse.

Over the past few months, Kaiser has acquired over 3 per cent in BSE, while Caldwell has increased his shareholding from 3.8 per cent last year to 4.25 per cent through multiple private deals, exchange officials said. They said the shares had been purchased from brokers, as well as some of the institutional investors in BSE.

Along with US hedge fund legend George Soros and private equity firm J C Flowers, Caldwell and Kaiser were in the race to buy Dubai Financial Group LLC’s four per cent stake in BSE. Kaiser, through his private equity firm, Argonaut, was the highest bidder and had offered to pay Rs 370 a share. But, looking at the rush, embattled Dubai Financial deferred its stake sale plans in anticipation of higher valuations in the future, said a deal maker.

Taking a cue from Caldwell and Kaiser, Soros and J C Flowers have also initiated talks with broker-members and institutional investors to acquire some stake in BSE.

According to market players, the rush for BSE stake is in anticipation of improved performance and further gains in the coming months. More players are expected to rush in following the BSE board’s approval to issue 6.5 million fresh shares.

The valuation of the exchange has seen a sudden spurt in the recent past. Under the new management, BSE changed its derivative trading cycle to compete with the National Stock Exchange (NSE), launched a mutual fund trading platform and is upgrading its technology platform. The exchange has a near-28 per cent share of the equity spot market in India and has been making efforts to develop its derivative trading segment, where NSE is a monopoly player. BSE will launch currency derivatives in June and is also in the process of increasing its stake in Central Depository Services to 51 per cent.

Currently, six foreign investors hold 25.65 per cent of BSE and five Indian institutions hold 12 per cent. A little under 62 per cent of the exchange’s shares are widely held.

Kaiser is the majority shareholder of a largely successful Bank of Oklahoma and GBK Corporation, parent of Kaiser-Francis Oil Company (an independent oil and gas exploration and production company) and founder of Excelerate Energy.

Caldwell is recognised as one of the world’s foremost investors in securities exchanges and his clients have holdings in Hong Kong, Johannesburg, London, Osaka, Toronto, the Chicago Board Options Exchange and the International Stock Exchange. Caldwell has been at the helm of affairs during every major consolidation of stock exchanges in the US.

Source: Business Standard

Posted in Main Page.

No Responses (yet)

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

Some HTML is OK

or, reply to this post via trackback.

Disclaimer: The website solely provides information about HEDGE FUNDS INDIA space. No data or statement herein is or should be construed to be a recommendation for the purchase, retention, or sale of the securities referred to herein and we accept no liability for the consequences of your reliance on this data and information. The value of investments and the income derived from them may fall as well as rise. The information in this website is based on data gathered from publicly available websites and other information mediums. We have not independently verified such information , do not represent it as accurate, true or complete, make no warranty, express or implied regarding it and shall not be liable for any losses, damages, costs or expenses relating to its adequacy, accuracy, truth, completeness or use. Investments in hedge funds, private equity, venture capital and other private investment funds are speculative and involve a high degree of risk. You could lose all or a substantial amount of your investment. This website does not list, and does not purport to list, the risk factors associated with an investment in any of the funds listed on this site. We do not represent any hedge funds, private equity or investment/financial advisors nor give any investment recommendations.