Intel's MCX stake buy gets FMC nod

The Forward Markets Commission (FMC), the commodity markets regulator, has approved Fidelity’s 2 per cent stake sale in the country’s largest commodity futures exchange, the Multi Commodity Exchange of India (MCX), in favour of Intel Capital (Mauritius), a subsidiary of Intel.

Rajeev Agarwal, member, FMC, confirmed the development. According to sources, Intel is planning to announce the buyout mid-this week, probably on Thursday.

The commission, on February 26, had approved 2.03 per cent (1,655,476 equity shares) equity transfer from Fid Funds (Mauritius) to Passport India Investments (Mauritius). Passport India is an existing stakeholder in the exchange, having 3 per cent equity.

Sources close to the development said the residual stake from the overall 9.03 per cent which Fidelity had acquired in the exchange in September 2006 had been sold to high net worth individuals (HNIs).

All these deals were done at an enterprise value of $1.2 billion set by by NYSE in February 2008 while buying 5 per cent equity in MCX.

The valuation in dollar terms still continues at $1.2 billion while in rupee terms, it has gone up due to the depreciation of the rupee. Sources said that rupee was hovering around 39 against the dollar in February 2008, which has fallen now to the level of 46. This mean, the valuation in rupee terms may have risen 18 per cent from the level of February 2008.