The Chicago Stock Exchange said it has entered into a definitive agreement to be acquired by an investor group led by Chongqing Casin Enterprise Group.
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The board CHX has unanimously approved the transaction, which is subject to regulatory approvals. The acquisition is expected to close in the second half of 2016. Terms of the transaction have not been disclosed.
Chicago Stock Exchange CEO and president, John Kerin, said, “After an in-depth review of strategic alternatives for the exchange, we believe that this acquisition is the best outcome for our clients, shareholders and the trading community as a whole.
“With our new investment partners, we will have significant additional resources to pursue our new business initiatives, including the launch of our on-demand auction product, CHX|snap, in the spring of 2016. We look forward to having an active role in improving trading efficiency and the stock exchange’s value proposition to clients and the broader trading community.”
The Casin Group, headquartered in Chongqing, is a leading diversified holding company in China with investments in financial services, real estate and environmental services.
“We are honored to partner with CHX,” Casin Group founder and chairman, Shengju Lu, said.
“We have reviewed CHX’s plans to improve market share through new growth initiatives and fully support them. Together, we have a unique opportunity to help develop financial markets in China over the longer term and to bring exciting Chinese growth companies to U.S. investors.”
The investor group intends on preserving CHX’s current business operations and proprietary trading platform, which has demonstrated state-of-the-art capacity, speed and system reliability.
Following the close of the transaction, John Kerin will continue to be the CEO and President of CHX and expects CHX’s management team to remain in place. ■