Almost two years after the Warsaw Stock Exchange (GPW) Management Board signed an agreement with the Central Bank of Armenia (CBoA) to negotiate the acquisition of a majority stake representing 65% of the shares in the Armenia Securities Exchange (AMX), the deal was finally concluded.
On 24 May 2022, during the World Economic Forum in Davos, Marek Dietl, CEO of the GPW, and Hayk Yeganyan, CEO of the Armenia Securities Exchange (AMX), signed a memorandum and initialled a Share Purchase Agreement setting out the terms of GPW’s acquisition of a majority stake representing 65.03% of shares in AMX. The seller of the stake is the Central Bank of Armenia (CBoA), which currently holds 90.05% of the share capital of the Yerevan-based stock exchange. The agreement was initialled in the presence of Andrzej Duda, President of the Republic of Poland, and Vahagn Khachaturyan, President of the Republic of Armenia.
“We are not only taking over 65 percent of the shares but above all we are taking responsibility for the Armenian capital market. Our main goal is to transfer the experience of the 30 years of the Polish capital market to Armenia and, more broadly, to the South Caucasus as Armenia plays an extremely important role in the midst of capital flows in the region: for example, the seat of the Federation of Euro-Asian Stock Exchanges is in Yerevan,” said Marek Dietl, President of the Management Board of GPW.
“I am very happy that the agreement has been signed and the cooperation will now unfold. These are the first tangible effects of what is happening here in Davos and the way that Poland is promoted here,” said Andrzej Duda, President of the Republic of Poland, during the press briefing on the second day of the World Economic Forum in Davos.
As a result of the transaction, GPW will become the majority shareholder of AMX with a block of 967 shares, representing a 65.03% stake in the company’s share capital. CBoA will hold 372 shares representing a 25.02% stake in the company’s share capital. The remaining 9.95% i.e. 148 shares are AMX’s treasury shares.
As a result of the transaction, GPW will indirectly take control of the Central Securities Depository of Armenia (CDA), where AMX currently holds 100% of the share capital.