ASX and Yieldbroker today announced that ASX’s investment in Yieldbroker has successfully completed.
A proposal for ASX to acquire a 49% shareholding in Yieldbroker for a total of $65 million was announced on 18 September 2014. The investment makes ASX a shareholder in Yieldbroker alongside ANZ, CBA, Citi, Deutsche Bank, J.P. Morgan, Macquarie, NAB, Royal Bank of Canada, Royal Bank of Scotland, Toronto Dominion, UBS and Westpac, who will remain equal shareholders.
ASX's 49% stake is non-controlling and Yieldbroker remains independently managed. The investment is funded from ASX’s existing cash and is expected to be broadly EPS neutral in the first full-year.
Mr Elmer Funke Kupper, ASX Managing Director and CEO, said: “We are pleased to finalise the ASX-Yieldbroker partnership. It will allow the companies to work together to bring new services and efficiencies to the Australian market,in both the exchange-traded and OTC environments. Yieldbroker has a strong track record in being innovative and highly responsive to its clients. This makes them a good partner for ASX as we build the next generation of Australia’s financial market infrastructure.”
Mr Richard Swift, Yieldbroker CEO, said: "Yieldbroker is the gateway to Australia's OTC debt and interest rate derivatives markets. The partnership with ASX has been welcomed by market participants and will allow us to acceleratethe expansion of our range of transparent, liquid and competitive services to banks, fund managers, corporates and governments.”