NEW YORK (Reuters) - Nasdaq said on Tuesday that Borse Dubai would sell shares worth $1.6 billion in the U.S. stock exchange operator, ceding its spot as the company's top shareholder to private equity firm Thoma Bravo.
The move sent shares of Nasdaq down nearly 4% in trading before the bell on Wednesday.
Borse Dubai will sell nearly 27 million Nasdaq shares at $59 each, a discount of more than 5% to the stock's last closing price.
The deal will reduce Borse Dubai's stake in Nasdaq to 10.8% from 15.5% and make it the company's second-largest shareholder. With a 12.5% stake, Thoma Bravo would become the biggest shareholder in the exchange.
Borse Dubai said it planned to agree to a lock-up period of 18 months for its remaining shares if the current sale is completed.
As long as it owns at least 10% stake in Nasdaq, it will also have the right to designate a nominee to the company's board of directors.