ASX has entered into an agreement to sell its 18.6 per cent shareholding in financial software IRESS, which is expected to produce gross proceeds of $385 million.
The sale has been fully underwritten at a fixed price of $11.95 per share.
ASX said the transaction will generate a post-tax gain of $161 million.
The securities exchange’s investment in IRESS was held at $357.9 million or $11.12 per share as of 31 December, while the cost base of the firm’s shareholding is $151 million or $4.70 per share.
“IRESS has been an attractive investment for ASX over many years. But we believe now is the right time to divest as it no longer provides the strategic value to ASX that it once did,” Dominic Stevens, managing director and CEO, ASX said.
“When ASX invested in IRESS’s initial public offering in 2000, both ASX and IRESS were predominantly focused on servicing the Australian equities market.”
“Since then, both businesses have successfully evolved and expanded.”
UBS Australia will act as sole lead manager, underwriter and bookrunner of the sale.
IRESS chief executive Andrew Walsh said: “The ASX has been an IRESS shareholder since our initial public offering in 2000.
“Since that time we have continued to maintain and grow our Australian business in trading, market data and wealth, while also growing into a strong and diversified international technology company.
“We thank the ASX for its support over many years.”
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