Nasdaq Inc (NASDAQ:NDAQ)’s largest shareholder, Borse Dubai, is to sell around one-third of its stake in the US stock exchange owner, worth US$1.6 billion.
Set to see Borse Dubai lose its spot as Nasdaq’s top shareholder, the UAE-based sovereign wealth fund will sell 27 million shares at US$59 each.
This marks a more than 5% discount on Nasdaq’s Tuesday closing price, prompting the stock to fall 3.3% to US$60.40 in pre-market trading.
“Today’s offering is being conducted to enhance the capital structure and liquidity within the Borse Dubai Group,” Borse Dubai chief executive Essa Kazim said on Tuesday.
“We continue to be a long-term shareholder in Nasdaq and are invested in the success of the company.”
Borse Dubai, which is owned by the Investment Corp of Dubai and operates stock exchanges in the UAE, will still hold 10.8% of Nasdaq, compared to 15.5% previously.
These remaining shares will be subject to a lock-up period of 18 months, with Borse Dubai reserving the right to nominate prospective Nasdaq board members so long as it owns over 10% of the firm.
Borse Dubai had acquired 20% of Nasdaq in 2007, in return for a controlling stake in Sweden’s OMX stock market.
Some 28% of the London Stock Exchange was bought by Borse Dubai through the deal, with this being sold off in 2015.
“Borse Dubai is and continues to be a valued shareholder of Nasdaq, underpinned by a shared vision for our future,” Nasdaq chief financial officer Sarah Youngwood added.
“Borse Dubai’s insights and contributions have and will continue to shape our path ahead.”