It has been confirmed that the Johannesburg Stock Exchange is buying 49 percent of the capital of the Stock Exchange of Mauritius for a sum of approximately US$32 million.
According to informed sources at the Stock Exchange of Mauritius in the island’s capital of Port Louis, the stock exchange started negotiations for a strategic partnership with a foreign stock exchange in February 2007 following a decision
of the board of administration.
At the initial stage, the sources add, discussions were held with three potential partners, namely with the Johannesburg Stock Exchange, the Indian Financial Technologies Limited and the National Stock Exchange of India. Finally, the Johannesburg Stock Exchange was chosen, sources indicate.
The Mauritius cabinet of ministers have now been briefed on this major stock exchange development on the regional plan, indicated the sources who added that this cooperation could well be used as a blueprint for African financial development.
Also sources revealed that the board of the Stock Exchange of Mauritius, which has recommended to its shareholders to approve this partnership, is of the opinion that with this new financial agreement, the position of Mauritius as a serious international financial center will be reinforced.
Sources believe that the partnership of the Stock Exchange of Mauritius with the South African Johannesburg Stock Exchange will give a real boost to the local exchange as its evolution since the beginning of the year does not show any sign of recovery.
The main index, the SEMDEX has lost some 16.25 percent of its value since the beginning of the year, sources added.