Tel Aviv Stock Exchange Explores Acquisition of Cyprus Exchange
Translated & summarized from Ynet by baba
The Tel Aviv Stock Exchange is in advanced talks to acquire the Cyprus Stock Exchange as part of a government privatization tender. The acquisition, valued at 20-40 million euros, would grant TASE access to the Eurozone and align with its new strategic plan for expansion. Several European exchanges are expected to compete for the Cyprus Stock Exchange, which has annual revenues of 4-7 million euros. TASE aims to boost the Cypriot exchange's profitability and trading volumes.
The story in 6 lines · by baba
- The Tel Aviv Stock Exchange is considering acquiring the Cyprus Stock Exchange in an upcoming privatization tender.
- The acquisition is valued at 20-40 million euros and offers TASE access to the Eurozone.
- Several European exchanges are expected to compete for the Cyprus Stock Exchange.
- The Cyprus Stock Exchange has annual revenues of 4-7 million euros and is currently state-owned.
- The move aligns with TASE's strategic plan for expansion and potential future acquisitions.
- The tender will consider price (70%) and quality (30%) in its decision.
The Tel Aviv Stock Exchange (TASE) is in advanced discussions to acquire the Cyprus Stock Exchange (CSE), located in Nicosia. TASE, led by CEO Itai Ben-Zeev, is considering bidding in an upcoming government tender to privatize the Cypriot exchange. Several other European exchanges are also expected to participate in the tender. The CSE is valued at tens of millions of euros and is relatively small.
While no final decision has been made by TASE's management or board, the potential acquisition aligns with a global trend of exchanges operating multiple markets, such as Euronext and ICE. A key advantage for TASE would be gaining access to the Eurozone, as Cyprus is a member. The privatization process began a year ago when the Cypriot government decided to sell the exchange, which is currently fully state-owned and supervised by the local securities authority.
The CSE's annual revenues are between 4 to 7 million euros, presenting significant growth potential for a private operator. In comparison, TASE's 2025 revenues were approximately 160 million euros, with a net profit of about 51 million euros. The CSE's estimated acquisition value of 20-40 million euros is in line with similar sales of Balkan and Eastern European exchanges. This valuation includes a premium for control of trading infrastructure, clearing, and an EU operating license.
The Cypriot exchange has operated a joint trading and clearing platform with the Athens Stock Exchange since 2006, which might also express interest in the acquisition. The tender's selection criteria will be 70% price and 30% quality. Cyprus aims to sell the exchange to an international operator or strategic investor to boost its low trading volumes and profitability. The CSE's main income currently comes from clearing services and trading in foreign corporate bonds.
This potential acquisition fits into TASE's new strategic plan, announced in mid-September, which involves establishing a public holding company to manage its various operations and facilitate future acquisitions and partnerships. The plan also includes extending trading hours and offering administrative services for unregulated funds, with a target of 15-18% annual revenue growth by 2031.
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