The WSE Management Board signed an agreement with the Central Bank of Armenia (CBoA) to negotiate the purchase of a majority stake representing 65 percent of shares in the Armenian Stock Exchange (AMX). The provisions of the agreement are not binding, and the conclusion of the investment agreement will depend, inter alia, on from the performance of the due diligence process by the WSE and obtaining the required corporate approvals.

“The cooperation of the WSE with the Central Bank of Armenia is a historic moment and good news for both parties to the agreement. Many sectors in Armenia are under-invested, which means the country has great growth potential. And it is precisely investment that drives economic development, especially in emerging countries. I believe that the acquisition of AMX by the WSE would allow the Armenian capital market to enter a fast growth path, and the Warsaw Stock Exchange would get a satisfactory return on investment. It is not without significance that Poland is becoming a promoter of developing markets. This is a good direction,” Jacek Sasin, Deputy Prime Minister, Minister of State Assets, said.

The agreement signed by the WSE and CBoA sets out the framework conditions for further negotiations in order to potentially sign an investment agreement. The next step of the WSE will be to conduct the due diligence process and to prepare, in cooperation with the CBoA and AMX, a 5-year development plan for the Armenian Stock Exchange, as well as agree the final terms of the investment agreement. They may differ from the framework assumptions.

The preliminary, estimated valuation of 100% of AMX shares amounts to approximately PLN 5.8 million.

(WBJ)