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CORRECTION: NZX set to make 71% gain on two-month investment in BESA

By Paul McBeth

Thursday 11th December 2008

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NZX, operator of the New Zealand stock exchange, stands to make a 71% profit on its two-month investment in the Bond Exchange of South Africa.

The Board of BESA has recommended shareholders accept the Johannesburg Stock Exchange offer of 125 rand per share, after turning down an earlier offer of 90 rand. NZX is the biggest shareholder in BESA, having acquired its 22% stake on October 3 for 73.17 rand.

"The NZX anticipates accepting the offer, and will update the market once it has been finalised," said Lucy McFadden, spokeswoman for NZX.

In November, NZX said JSE's offer of 90 rand was "very significantly below fair value," and it would not support the takeover. The deal is expected to be completed next year with a single payment concluding the deal.

NZX's stock last traded at $5.47, and has fallen 40% over the last 12 months.

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