ASX to Sell Its Entire Stake in Yieldbroker to Tradeweb

The Australian Securities Exchange (ASX) has entered into an agreement with Tradeweb Markets LLC (Tradeweb), a world's leading operator of electronic marketplaces for rates, credit, equities and money markets, to sell all of its interest in Yieldbroker Pty Limited ( Yieldbroker) to Tradeweb. Yieldbroker is a leading Australian government bond and interest rate derivatives trading platform which covers the institutional, wholesale, and primary markets.

Last month, Tradeweb said in talks to acquire Yieldbroker​ that the acquisition would help grow its Asia Pacific footprint. In addition, the company revealed during the negotiations that the purchase price was expected to be AUD 125 million, but the final transaction price has not been disclosed yet.

ASX, a Yieldbroker shareholder since 2014, owns about 43% shares in Yieldbroker, while the remaining shares are owned by various domestic and international banks, as well as current and former employees of Yieldbroker.

"We believe this transaction will deliver substantial benefits to the Australian market through Yieldbroker and Tradeweb leveraging each other's innovative trading solutions and deep industry experience," said Helen Lofthouse, Managing Director and CEO at ASX. "ASX has been a shareholder of Yieldbroker since 2014 and, given the relationship built over the years between the two organisations, ASX will continue to work closely with new owner Tradeweb to help foster long term growth and solutions for customers in the Australian fixed income market."

ASX anticipates a revenue of roughly AUD 55 million (after estimated transaction costs) through the Proposed Transaction, while the current carrying value of its stake in Yieldbroker stands at approximately AUD 30 million.

The fulfillment of the Proposed Transaction is still contingent upon various conditions, including obtaining regulatory approvals.