JSE makes bid for South African bond exchange

The proposed acqusition follows a decade of fruitless meger negotiations between the JSE and Besa, which last year underwent a demutualisation exercise. The JSE is offering R90 per share - more than double loss-making Besa's net asset value.

In a statement, the JSE says it believes that the consolidation of the two markets is the best way in which to grow South Africa's interest rate markets.

"The consolidation will also help promote South Africa's international competitiveness by leveraging the best each exchange has to offer to deepen the market, improve liquidity, create economies of scale and ultimately bring user costs down."

The Bond Exchange posted a R1.5 million loss in 2007 from revenue of R47.7 million as the company spent heavily to pay for rising staff and computer system costs.

Besa's two biggest shareholders are the New Zealand Stock Exchange with a 22% holding, and Investec, which owns 15% of the stock.