Financial Technologies Singapore Pte Ltd (FTSPL), a wholly owned subsidiary of Financial Technologies (India) Ltd (FTIL), on Tuesday announced the sale of its 100 per cent equity ownership in SMX to ICE Singapore Holdings Pte Ltd for $150 million.
This sale comes in the backdrop of FTIL group company National Spot Exchange Ltd being embroiled in a Rs 5,500-crore payment crisis.
According to a FTIL statement to the NSE, the sale transaction was approved by the board of directors of FTIL and FTSPL on Monday with the signing of definitive agreements and is subject to certain customary closing conditions and approvals.
FTIL said it will primarily utilise the sale proceeds towards repayment of outstanding debt towards external commercial borrowings and foreign currency loan of banks, subject to regulatory approvals, if any. Pursuant to this move, the company will become debt/ lien-free, it added.
PTI reports:
Raising emotional pitch on the sale of his Singapore-based bourse SMX, Financial Technologies CEO and Managing Director Jignesh Shah has expressed “mixed” feelings about parting ways with an asset that he had nurtured as a global institution.
In a statement, Shah said: “He has mixed emotions about parting ways with an asset that he had nurtured as a global showcase of an institution, built with Singapore’s world-class infrastructure and regulation coupled with Indian technology and expertise.”
Shah, however, said: “He will be happy to watch it scale new heights with satisfaction from a distance under ICE.”
He also wished for the future success of SMX and hoped that the bourse’s success would inspire many more entrepreneurs in both countries.
“His trust in board and management of the SMX team has been vindicated and they have done an exemplary job of executing on his vision and making both India and Singapore proud by growing SMX into a globally recognised leading institution, replicating the successful track record of FTIL with MCX, MCX-SX and IEX at home,” Shah said.
Congratulating ICE on SMX acquisition, Shah said: “SMX acquisition by ICE is a testimony of India’s technology excellence and domain knowledge in developing and operating world-class financial markets and institutions that are at par with global standards in all respect, from international financial centre like Singapore.”