NZX withdraws offer to buy stake in NSX

NZX withdraws offer to buy stake in NSX

 

19/06/09

 

New Zealand Exchange has announced that it would withdraw its offer to buy a 50.1% stake in NSX of Australia, based on current indications that the purchase would be unlikely to receive the support of a sufficient number of NSX shareholders.

“While the NSX share price has risen steeply following news of the prospective purchase, we don’t believe it’s efficient, or fair to NSX shareholders, to proceed to the next stage of a bid that looks unlikely to be successful,” said NZX CEO Mark Weldon.

“The NSX investment was one of a suite of opportunities NZX was considering. We have already cemented the acquisitions of Country-Wide Publications and M-co, to serve New Zealand markets, and we are continually reviewing our options in other markets.
 
“We are still of the view that NZX would be well positioned to create a much stronger earnings outlook for NSX, and to execute a growth strategy for the company that would materially grow its value and customer offering.

“We will continue to monitor NSX’s progress and we wish the company well for the future,” said Weldon.

The deal, if sealed, would have been worth a total of approximately AUD $11.78 million in new capital to NSX.