NZX will keep looking to expand its operations offshore despite withdrawing its bid to buy a controlling stake in small Australian market operator NSX.

NZX, which operates the local sharemarket, last night said it was pulling its offer to buy a 50.1% stake in NSX, based on indications it was unlikely to receive the support of a sufficient number of NSX shareholders.

"The NSX investment was one of a suite of opportunities NZX was considering,” chief executive Mark Weldon said.

Guinness Peat is in exactly the position it likes: it is likely to hold the casting vote on whether NZX’s takeover of Australian stock exchange company NSX will proceed.

NSX, which owns two of Australia’s five stock exchange licences, is loss-making and has only 14 months of operating capital left before the cupboard is completely bare.

So you’d think shareholders would be leaping for joy at the news of an $A11.78 million capital injection, in return for 50.1% of the company. 

However, that’s not the case.

The directors of NZX takeover target NSX have resigned, ahead of a meeting on Thursday at which shareholders were likely to sack them.

NZX's rights issue prospectus details the motives behind its $33 million spend-up, which includes the controversial purchase of a rural publisher.

The stock exchange operator has three acquisitions underway: electricity and gas market operator M-Co, a 50.1% stake in Australian stock exchange company NSX and Country-Wide Publications.

The total cost of these is $33.7 million (at current exchange rates, as the NSX transaction is priced in Australian dollars).

NZX’s acquisition hunt continues, with the stock exchange operator announcing this afternoon that it wants to take a 50.5% stake in Australian-listed NSX and will be issuing equity and debt to do it.

NZX will spend $A11.8 million on acquiring the NSX stake, which will be gained by NSX issuing 78.5 million more shares.

It plans on funding this with a mixture of equity and debt, according to its announcement.

NZX market development manager Geoff Brown says this capital raising is "imminent" and more details will be available within the next week.