Topics        : Mergers &
Acquisitions<http://dealcurry.com/category.php?catid=1>
Industries  : Banking/Financial
Services<http://dealcurry.com/category.php?indid=5>
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BK Modi's - *Spice Finance* is keen on acquiring 15% stake in *Universal
Commodity Exchange* (UCX).The deal if goes through - would be probably done
at par value, which means Spice will have to pay $3.24 Mn for the stake.

UCX is jointly promoted by *IT People India*, Indian Farmers Fertiliser
Cooperative, IFCI Venture Capital Funds, Rashtriya Chemicals and
Fertilisers, Haryana State Cooperative Supply Marketing Federation and
Bombay Bullion Association.

IT People India hold a 40% stake in UCX, while the shareholding of the other
entities is not known. Mumbai based - UCX is awaiting the final approval
from Forward Market Commission to start operations.  It has engaged* PwC *as
consultants for the proposed exchange.

Spice Group which is sitting on a cash pile of Rs 3,000 Cr, has been
aggressively acquiring companies through its various group companies. It was
also talking to Khandwala Securities Ltd for an acquisition. Earlier in Dec,
it proposed to buy a 15% stake in *National Multi Commodity Exchange*. It is
also set to acquire Nepal based money transfer agent - *Annapurna Finance *for
about Rs40-50 Cr.

Spice Finance is a Spice Group company headed by *Sudip Bandyopadhyay*, who
joined Spice from Reliance Money.

*Spice Group's Recent acquisitions*


 Date Buyer Asset  Jan'10 Spice Retail Global Access Retail Pvt Ltd
Sept'09 Spice
Investments & Finance Advisors Wall Street Financ

The market regulator has put an upper cap of 15% for shareholding in
exchanges, which means IT People India will have to sell 25% stake in UCX,
after receiving the approval to start operations. Mumbai based - IT People
India sells software products and solutions to sock exchanges and other
financial institutions.

*Comparables*


 Date Buyer Asset Stake Size ($ Mn)  Sept'09 IDFC Indian Commodity Exchange
5% -  Aug'09 Shree Renuka Sugars Ltd National Commodity & Derivatives
Exchange Ltd - 7.5  Aug'09 BSE United Stock Exchange Ltd - -  July'09 IFCI
Ltd MCX Stock Exchange Ltd - 51.89  June'09 Union Bank of India MCX Stock
Exchange Ltd - 18.55

Source:  *Financial
Chronicle*<http://www.mydigitalfc.com/stock-market/spice-finance-eyes-15-stake-ucx-925>

-- 
Regards

Hardik Shah

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