In a seismic move, Nasdaq Inc. announced that Dubai is set to relinquish its coveted position as the premier shareholder in the esteemed U.S. stock exchange operator. This drastic shift comes as Dubai’s Borse Dubai Ltd. gears up to unload a staggering $1.6 billion worth of Nasdaq shares.
Nasdaq’s Strategic Maneuver
Late Tuesday, Nasdaq disclosed that Borse Dubai is embarking on a monumental secondary offering, tendering a whopping 27 million shares in Nasdaq at $59 apiece. This strategic move will significantly reconfigure the landscape of ownership within the stock exchange giant.
Dubai exchange to sell one-third of stake in Nasdaq : Legal Minds in the Fray
Navigating this labyrinthine deal, Nasdaq enlisted the expertise of Wachtell Lipton Rosen & Katz, while Davis Polk & Wardwell LLP steered the legal course for Borse Dubai.
Diluting Dubai’s Dominance
With this ambitious share sale, Borse Dubai’s grip on Nasdaq’s reins will slacken, diminishing its stockpile to a still-significant 10.8%, down from its previous stronghold of around 15.5%. This pivotal transformation relegates Dubai from its lofty perch as Nasdaq’s top shareholder.
New Sheriff in Town
Emerging as the eminent stakeholder post-sale, Thoma Bravo is poised to seize the mantle with a commanding 12.46% stake in Nasdaq, dethroning Dubai from its once-unassailable position.
Nasdaq’s Acknowledgment
Sarah Youngwood, Nasdaq’s astute CFO, hailed Dubai’s enduring influence on the company’s trajectory, affirming their invaluable contributions to shaping its trajectory.
Dubai exchange to sell one-third of stake in Nasdaq : Dubai’s Strategic Vision
Echoing this sentiment, Essa Kazim, Borse Dubai’s visionary CEO, underscored the company’s enduring commitment to Nasdaq’s prosperity, reaffirming its steadfast support despite the impending shift in ownership dynamics.
Forward Trajectory
Despite the seismic reshuffle, Borse Dubai remains resolute in its commitment to Nasdaq’s enduring success, affirming its unwavering dedication through a lock-up agreement, vowing not to divest any further shares for at least 18 months.
Market Implications
In the wake of this momentous announcement, Nasdaq’s shares experienced a modest dip, trading at $61.32 on Wednesday afternoon, marking a slight decline from the previous day’s close.
Dubai exchange to sell one-third of stake in Nasdaq : Movers and Shakers
Steering this intricate transaction, Morgan Stanley and Goldman Sachs & Co. LLC assumed the mantle of lead bookrunners, with Ropes & Gray LLP offering sage legal counsel. JP Morgan Securities LLC, in turn, lent its expertise as the capital markets adviser to Nasdaq.
