Tel Aviv Stock Exchange Explores Acquisition of Cyprus Exchange
Translated & summarized from Globes by baba
The Tel Aviv Stock Exchange (TASE) is exploring the acquisition of the privatizing Cyprus Stock Exchange (CSE) for tens of millions of euros. This potential overseas expansion aligns with TASE's strategic growth plan targeting 15-18% annual revenue growth. TASE aims to replicate its domestic success, which saw its valuation soar to 12 billion shekels since its 2019 IPO. The CSE's privatization process is underway, with Euronext also reportedly interested.
The story in 5 lines · by baba
- The Tel Aviv Stock Exchange is considering acquiring the Cyprus Stock Exchange as part of its international expansion.
- The potential deal is valued at tens of millions of euros and is in the early stages of evaluation.
- Cyprus is privatizing its stock exchange, with a tender expected in the coming months.
- TASE aims to replicate its domestic success, which saw its valuation increase significantly since 2019.
- Euronext, Europe's largest exchange operator, is also reportedly a strong candidate for the acquisition.
The Tel Aviv Stock Exchange (TASE), led by CEO Itai Ben-Zeev, is considering a potential acquisition of the Cyprus Stock Exchange (CSE), which is currently undergoing privatization. This move, if successful, would represent TASE's first major expansion overseas and is in its initial stages. The deal is estimated to be worth tens of millions of euros.
Cyprus's parliament unanimously approved a bill to privatize the CSE earlier this year, with a tender expected in the coming months for the sale of the exchange to a strategic entity that will also manage it. Euronext, Europe's largest stock exchange operator, is considered a leading candidate. TASE is also vying for the acquisition, aiming to leverage its recent significant improvements and strategic growth plan, which targets 15%-18% annual revenue growth over the next five years.
TASE's strategic plan includes expanding domestic and international partnerships and exploring adjacent business opportunities. To support this, TASE intends to modify its corporate structure to align with leading global exchanges, facilitating new ventures and partnerships. The exchange aims to replicate its domestic success, where under Ben-Zeev's leadership since 2017, it transformed from a member-owned entity to a for-profit company, culminating in its 2019 IPO at a valuation of approximately 700 million shekels.
Since becoming public, TASE has undergone structural reforms, infrastructure upgrades, and new product launches, aiming to compete with global exchanges. These efforts have led to increased trading volumes, with daily trading volume rising from 284 million shekels in 2019 to approximately 5.7 billion shekels in the first half of 2026. The stock price has also surged, with TASE now valued at 12 billion shekels, over 17 times its IPO valuation. If TASE participates in the tender, these achievements will likely be highlighted in its bid.
The Cyprus Stock Exchange's daily trading volume is in the low millions of euros, dominated by large stocks such as Eurobank, Bank of Cyprus, and Demetra Holdings, which accounted for nearly 70% of trading volume last year.
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