Bourses operator London Stock Exchange has entered into an agreement with Tokyo Stock Exchange (TSE) to sell its stake in Tokyo AIM, Japan's version of the Alternative Investment Market.
Tokyo AIM, a joint venture between the two companies, was launched in June 2009 in an effort to provide companies with an less stringent listing requirements than the TSE Mothers Index, the existing market for high-growth and emerging stocks.
Back in May 2009, LSE said that it would invest 980m yen (around £7m at the time) into the joint venture. A statement prior to its launch said: "TOKYO AIM will combine TSE's knowledge of the region and the London Stock Exchange's growth market expertise, enabling it to offer the highly successful AIM model to a wider range of Japan and Asia's growth companies."
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However, the LSE has been prompted to pull out of the joint venture since Tokyo AIM has seen just one listing since its inception.
LSE is to dispose of its 49% interest in Tokyo AIM for a cash consideration of £1.3m plus a royalty payment of £0.2m.
The sale is expected to be made on Wednesday, March 28th.
LSE's share price fell 0.49% to 1,018.00p in mid-afternoon trade on Tuesday.
NR/BC
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