DUBAI, (AP) — The Dubai Financial Market, Dubai’s principal stock exchange, announced on Tuesday that it has offered 121 million dollars to acquire Nasdaq Dubai, the emirate’s second market.
Through such a deal, Dubai would “achieve its goal of creating a powerful capital markets hub for the Gulf Cooperation Council (GCC) and the wider Middle East,” Jeff Singer, chief executive of Nasdaq Dubai, said on DFM’s website.
The offer, which was endorsed by DFM’s board of directors on Monday, is composed of 102 million dollars in cash and 40 million DFM shares for a total value of 121 million dollars, the statement said.
The deal for Nasdaq Dubai, an international market that serves as a bridge between the West and Asia, has been approved by Bourse Dubai, which owns 66.7 of the exchange, and by Nasdaq OXM, which owns the balance, the statement said.
It is still subject to regulatory approval.
To satisfy Dubai and United Arab Emirates regulations, DFM will “restructure itself in the near future by establishing a new holding company. This holding company would wholly own both DFM and Nasdaq Dubai, which would continue to operate as two distinct markets,” according to the statement.
The announcement comes as Dubai authorities are trying to restructure financial and economic institutions in the emirate, which is estimated to have between 80 and 100 billion dollars in debt.