TOKYO Aug 23 The Tokyo Stock Exchange said on
Thursday it acquired a two-thirds stake in the Osaka Securities
Exchange for $1.1 billion in a public tender offering,
paving the way for a combination to create a dominant equities
bourse in Japan.
The Tokyo Stock Exchange (TSE) said in a statement that 80
percent of all outstanding shares in the Osaka Securities
Exchange (OSE) were tendered in the offering, above the
two-thirds upper limit of what the TSE said it would purchase.
The tender offer was launched on July 11 and closed on
The result makes it all but certain that the TSE will be
able to succeed at the next stage of the takeover process, an
extraordinary meeting of OSE shareholders in the coming months
where the merger itself must be approved by two-thirds of the
Unveiled in November, the merger has been billed as a way to
combine the strengths of the TSE in cash equities, a market
segment it dominates with more than 90 percent of volumes, and
the OSE's stronghold in Nikkei futures and other derivatives.
But the outcome had been clouded somewhat by the opposition
of some overseas funds who believed the TSE should be paying a
higher premium than the per share tender offer price of 480,000
yen, which values the OSE at 130 billion yen.
OSE shares closed at 437,500 yen on Thursday.
Fidelity, which owns 15 percent of the OSE, making it the
largest shareholder, had been leaning towards not tendering its
shares at that price, according to sources with knowledge of the
global fund giant's thinking.
The combined value of domestic stocks listed on the TSE and
OSE, at $3.5 trillion, would trail only NYSE Euronext (US)
at $13.2 trillion and Nasdaq OMX Group Inc's
$4.5 trillion, figures for July from the World Federation of
If OSE shareholders approve the merger, the combined firm,
to be called the Japan Exchange Group, will be established in