The Tel Aviv Stock Exchange is in an advanced stage of examining the possibility of acquiring the Cyprus Stock Exchange (CSE).
According to information reported in the Israeli financial newspaper Calcalist, the Tel Aviv Stock Exchange, under the management of Itai Ben Zeev, intends to participate in the tender that the Republic of Cyprus will announce for the privatization of the Cyprus Stock Exchange. Other European stock exchanges are also expected to participate in the tender.
The value of the Cyprus Stock Exchange, which is based in Nicosia and is considered relatively small, is estimated at a few tens of millions of euros.
As reported in the publication, both the management and the Board of Directors of the Tel Aviv Stock Exchange have not yet made a final decision on participation in the competition.
The decision will be made after the publication of the announcement and the evaluation of the terms and conditions of participation.
However, the fact that the adoption of a business model in which a stock exchange group manages multiple stock exchanges internationally is being considered is of particular interest.
Typical examples include the European group Euronext, which manages the stock exchanges of Paris, Amsterdam, Brussels and Lisbon, while a year ago it acquired the Athens Stock Exchange for 413 million euros, as well as the ICE group, which, according to the publication, manages Nasdaq and other commodity exchanges.
Cyprus' strategic advantage
According to the publication, the main advantage of a potential acquisition is access to the Eurozone, of which Cyprus is a member.
The process began a year ago, when the Cypriot government decided to proceed with the privatization of the Cyprus Stock Exchange.
The most important company mentioned in the publication as listed on the Cyprus Stock Exchange is the Bank of Cyprus, the country's largest bank, with a market capitalization of 4.6 billion euros.
In the real estate sector, the company YODA stands out, with a market value of 3.2 billion euros.
Another important Cypriot company is the cement industry and infrastructure company Vassiliko Cement, which is valued at 500 million euros.
Financial data and valuation of the Cyprus Stock Exchange
Today, the Cyprus Stock Exchange is wholly owned by the Cypriot state and supervised by the local Securities & Exchange Commission.
Its annual revenue ranges between just 4 and 7 million euros, which suggests significant growth potential for a private investor who would acquire it.
In comparison, the Tel Aviv Stock Exchange's revenue in 2025 amounted to 563 million shekels (about 160 million euros), while net profits amounted to 181 million shekels (about 51 million euros).
In the first half of 2026, the Tel Aviv Stock Exchange reported an annualized revenue rate of approximately 740 million shekels, recording an increase of approximately 31% compared to the same period in 2025.
The market capitalization of the Tel Aviv Stock Exchange is 12.3 billion shekels (about 3.5 billion euros).
In contrast, the estimated acquisition value of the Cyprus Stock Exchange ranges between 20 and 40 million euros.
In similar transactions in the past, stock exchanges in the Balkans and Eastern Europe were sold for 50–60 million euros.
This valuation also includes an additional price for acquiring control over the trading infrastructure, the clearing system and the full license to operate a stock exchange within the European Union.
This is one of the key factors that makes the acquisition attractive to the Tel Aviv Stock Exchange.
The collaboration with the Athens Stock Exchange and the upcoming tender
Since 2006, the Cyprus Stock Exchange has operated a joint trading and clearing platform with the Athens Stock Exchange.
The latter may also express interest in the acquisition, possibly gaining a competitive advantage over other candidates due to the existing collaboration.
The evaluation of the bids in the upcoming tender is expected to be based on the following criteria:
- 70%: The offered price.
- 30%: Qualitative criteria and other evaluation factors.
The Cypriot government's goal is to sell the shares of the Cyprus Stock Exchange to an international brokerage firm or strategic investor.
The government expects that such an investor will be able to significantly increase the particularly low trading volumes, which are one of the main reasons why the Cyprus Stock Exchange is not profitable.
The bulk of its revenue today comes from clearing services and the trading of foreign company bonds.
In the context of privatization, the Stock Exchange's employees are expected to receive severance packages and related financial incentives.
The goal is to create a regional financial center in the Eastern Mediterranean
Following the approval of the privatization legislation by the House of Representatives, the Chairman of the Board of Directors of the Cyprus Stock Exchange, Marinos Christodoulides, stated that the goal is to transform the Exchange into a competitive regional capital markets center in the Eastern Mediterranean.
According to him, privatization is expected to offer the Stock Exchange greater flexibility and better ability to adapt to a rapidly changing financial environment.
It will also allow the Cyprus Stock Exchange to expand its services and products, strengthen its market presence, improve its competitiveness and operate fully based on private sector principles.
The Tel Aviv Stock Exchange's new strategic plan
In mid-September, the Tel Aviv Stock Exchange presented a new strategic plan, which mainly envisages the creation of a listed holding company.
Under this company they will operate as separate subsidiaries:
- The Stock Exchange itself.
- Clearing and settlement companies.
- The activities of stock market indices.
- Information and technology services.
- Additional companies that may be created in the future.
This restructuring aims to allow the Exchange to make acquisitions, attract strategic partners and enter new business sectors with greater flexibility.
The possible acquisition of the Cyprus Stock Exchange is part of this strategy.
The plan also includes the extension of trading hours and the provision of administrative services to investment funds, in areas not subject to regulatory supervision.
Ambitious growth targets until 2031
Under the new strategic plan, the Tel Aviv Stock Exchange aims for annual revenue growth of between 15% and 18% by 2031, compared to a previous target of 10%–12%.
If it achieves these growth rates, its annual revenue could reach 1 billion shekels as early as 2028.
In recent months, the Tel Aviv Stock Exchange had also made contacts with a foreign investor for the sale of its stock index business.
However, these negotiations did not result in an agreement.
(Source: InBusinessNews)
