Industry: Financial services
Mumbai: Financial Technologies India Ltd (FTIL), renamed as 63 Moons Technologies Ltd, on Thursday announced that it has sold its entire stake in Bourse Africa Ltd for $10.5 million to Continental Africa Holdings Ltd (CAHL).
In 2014, CAHL had agreed to buy Bourse Africa for $40.5 million.
Bourse Africa Ltd was a wholly-owned subsidiary company of FT Group Investments Pvt. Ltd (FTGIPL) which in turn is a wholly-owned subsidiary of FTIL.
“Post the completion of due diligence by Afreximbank (part of the CAHL consortium) for the purpose of financing CAHL for the transaction, on 08 March 2016, FTGIPL received a revised offer of $10 million from CAHL for the acquisition of BAL,” said the company in an exchange filing.
The consortium of CAHL comprises of Africa Export Import Bank (Afreximbank), Keynes Private Equity (KPE), Pan African Capital Plc (PACP), First Heritage Business Corporation (FHBC) and GMEX Technologies Ltd (GMEX).
The valuation for Bourse Africa was revised due to lack of trading activity and regulatory pressures.
The sale of its stake is fetching FTIL only the cost of the exchange license.
“Despite our efforts, we couldn’t find a better offer,” said the company.