Polish GPW acquires Armenia Securities Exchange

Rick Steves

The Warsaw Stock Exchange (GPW) has signed a purchase agreement with the Central Bank of Armenia (CBoA) in which it buys a 65,03% stake in the Armenia Securities Exchange (AMX) from CBoA. The parties went through with the deal after first agreeing to it last month. As a result of the transaction, GPW will become the […]

The Warsaw Stock Exchange (GPW) has signed a purchase agreement with the Central Bank of Armenia (CBoA) in which it buys a 65,03% stake in the Armenia Securities Exchange (AMX) from CBoA.

The parties went through with the deal after first agreeing to it last month.

As a result of the transaction, GPW will become the majority shareholder of AMX holding a block of 967 shares, representing a 65.03% stake in the company’s total share capital.

CBoA will hold 372 shares representing a 25.02% stake in the company’s share capital. The remaining 9.95% i.e. 148 shares are AMX’s Treasury shares.

In addition, GPW will indirectly take control of the Central Depository of Armenia (CDA), in which AMX currently holds a 100% stake.

New foundations in Polish-Armenian relations

Marek Dietl, President of the Management Board of GPW, said: “We firmly believe that this transaction lays new foundations in Polish-Armenian relations as a clear expression of the 700-year history of mutual trust and respect that binds our two nations. Poland and the Warsaw Stock Exchange are helping Armenia to build economic relations with the West in small steps. We consider this investment as a long-term partnership. Our aim is to recreate with joint efforts the capital markets of Armenia and thrive to extend our business further into the region. We also expect to develop the capital markets infrastructure, creating opportunity for businesses to raise sustainable and affordable capital while enabling the investors and savers to manage their savings and investments more professionally within a wider range of investment products and opportunities.”

The detailed development plan of AMX and the Armenian capital market is set out in the long-term development strategy of AMX, which was developed in co-operation with the EBRD and GPW.

Martin Galstyan, Governor of the Central Bank of Armenia, said: “We believe this to be an important milestone in the development of Armenian capital markets. Having found such a partner in the Warsaw Stock Exchange, realizing we have the same vision and similar aspirations, we believe this deal to be a turning point in the chronicles of capital markets in Armenia. Under the leadership of the Warsaw Stock Exchange, with their experience and knowledge, AMX has the full potential to expand and become the robust stock market ready to take up the challenges of the 21st century and lead the region.”

Since 2008 that AMX operates as NASDAQ OMX Armenia and, for more than 18 years, the exchange has been an organised securities market in Armenia, offering market professionals a fully automated electronic trading platform.

Currently listed instruments include equities, corporate and government bonds, currency, credit, as well as repos and swaps. AMX is a member of the Federation of Euro-Asian Stock Exchanges (FEAS) and the International Association of CIS Exchanges.

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