ICE Buys Singapore Commodities Bourse from Financial Technologies
The Economic Times of India confirms that Financial Technologies is selling its Singapore Mercantile Exchange (SMX) unit.
The buyer is the Intercontinental Exchange Group Inc. (ICE).
The value of the deal is said to be $150 million.
"Analysts had expected Financial Tech would shed some of its ownerships in exchanges to protect its core trading platforms business as the company faces regulatory scrutiny that has sent its shares down more than 80 per cent this year," the publication reports.
A statement provided by the company confirms that Financial Technologies will use the proceeds of the sale to repay foreign currency loans.
Nonetheless, concerns remain for Financial Technologies.
"SMX didn't add anything to their bottom-line," Ashish Chopra, an analyst, tells the Economic Times of India. "If, in a couple of years, their losses hadn't come down they would have contemplated selling it, but it's come before that scheduled period of time simply because of what's happening on the domestic front with all the regulatory scrutiny."