The National Stock Exchange of Australia (ASX:NSX) has entered into a scheme implementation deed with CNSX Markets (CNSX), for the operator of the Canadian Securities Exchange (CSE) to acquire the 88-year-old Australian bourse.
CNSX Markets has been an investor in the NSX since 7 May 2025 and currently holds a 4.85% stake in the company.
The NSX is being advised by law firm HWL Ebsworth on the all-cash offer.
Under the scheme, CNSX will acquire all shares in the NSX that it does not already own by paying $0.035 cash per share, which represents a 59% premium to the NSX closing price on 16 May 2025, the last day of trading prior to announcement of the offer.
The SID and the scheme are not subject to financing or due diligence conditions.
The NSX unanimously recommends shareholders to accept the offer in the absence of a superior proposal and subject to an independent expert’s conclusion it is in the best interests of shareholders.
Each NSX director intends to vote all of the shares they own or control in favour of the scheme.
With the first court date on 1 August 2025, the implementation of the scheme is expected on 15 September.
The National Stock Exchange is the second largest listing exchange in Australia and home to listed companies that are valued from $500,000 to several billion dollars. The average amount of capital raised on the NSX per offer is $8.6 million.
NSX offers investors a number of advantages, including some unique investment opportunities, while enabling investors to further diversify their investments.
The acquisition enables the CSE to expand its geographic footprint by partnering with an exchange that has a similar focus and culture. Like the CSE, the NSX is primarily focused on early stage, entrepreneurial companies, with particular strength in the resource sector.
The NSX is positioned to disrupt a market currently dominated by an incumbent, legacy exchange, as the CSE was over 20 years ago, says Richard Carleton, CEO of the CSE.
“This transaction enables the CSE to expand its reach and builds on our success in attracting global listings,” Carleton says.
“Through our 21-year history, the CSE has grown to more than 750 listings by focusing on and supporting entrepreneurial companies. The NSXA, working with us, is poised to execute a similar plan in Australia.”
NSX Chief Executive Max Cunningham says the NSX is positioned to replicate the CSE’s success and become a competitive force in Australian capital formation.
“The Canadian experience demonstrates that one exchange size does not fit all,” says Cunningham.
“Issuers and investors in Australia are keen to see a dynamic alternative to the larger, legacy incumbent. A stronger balance sheet enables NSX to expand our product offering, sharpen our customer focus, and provide Australian companies, brokers and investors liquid, reliable and well-regulated services.
“We believe in a strong, accountable and transparent regulatory environment underpinned by rules rather than opaque ‘precedent-based’ decision-making around waivers and other governance matters.”
The National Stock Exchange of Australia was formed in 1937 as the Newcastle Stock Exchange. It listed on ASX in 2005, the same year it acquired the Bendigo Stock Exchange, and changed its name to the National Stock Exchange of Australia in 2006. It relocated its headquarters and operations to Sydney in 2016.
Write to Adam Orlando at Mining.com.au
Images: NSX & CSE
