Borse Dubai To Divest $1.6B Stake In Nasdaq
Portfolio Pulse from Benzinga Neuro
Borse Dubai is selling approximately one-third of its stake in Nasdaq Inc. (NASDAQ:NDAQ) for about $1.6 billion, retaining over 10% ownership. The sale involves 26.96 million shares at $59 each, with an 18-month lockup period for the remaining shares. This move marks a strategic shift for Borse Dubai and has led to a more than 2% drop in Nasdaq shares in extended trading.
March 20, 2024 | 6:33 am
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NEGATIVE IMPACT
Borse Dubai's divestment of a significant portion of its Nasdaq stake could lead to short-term volatility in Nasdaq Inc.'s stock price.
The sale of a substantial stake by a principal shareholder often leads to market perceptions of reduced confidence or a strategic shift, potentially causing short-term price volatility. The over 2% drop in Nasdaq shares in extended trading post-announcement indicates market reaction to the news. The lockup period suggests a long-term commitment, which might stabilize the stock in the longer term, but the immediate impact appears negative.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100