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SGX enters exclusive discussions to buy Baltic Exchange
In February this year, the Singapore Exchange had announced that it had submitted a non-binding bid for the acquisition of the London-based exchange.
A wooden plaque is seen on a wall at The Baltic Exchange in the City of London, Britain March 2, 2016. REUTERS/Toby Melville
SINGAPORE: The Singapore Exchange (SGX) on Wednesday (May 25) said it is entering into exclusive discussions with the Baltic Exchange regarding a cash offer for 100 per cent of the latter's share capital. This comes three months after SGX announced that it had submitted a non-binding bid for the acquisition of the London-based exchange.
In a news release on Wednesday, the SGX said the period of exclusivity for the talks will last from Wednesday to Jun 30 this year. Both exchanges will meet with shareholders of the Baltic Exchange and the wider stakeholder community to explain and discuss the offer.
SGX's chief executive officer, Loh Boon Chye, said this is the 10th year of the two exchanges' relationship.
"We recognise the integral role the Exchange plays within the global shipping community, which we hope to develop for the benefit of the industry as a whole," he added.
SGX said its proposed transaction will "bring together complementary strengths of Singapore and London, two of the world’s most important maritime hubs".
"SGX has been successful in driving the growth of the global dry bulks and freight market and is now a significant provider of clearing and settlement of freight derivatives," it said, adding that both exchanges will benefit from new growth opportunities, including potential new shipping benchmarks and clearing solutions that meet the market’s evolving needs for data and trading.
The proposal also commits to maintaining the significance and relevance of both the Baltic Exchange and SGX, according to the news release.
Under the proposal, the Baltic Exchange will remain at its current headquarters in London and maintain its existing market benchmark production and governance model. It will also keep end-user Baltic data fees and fees for SGX clearing of freight derivatives at current levels for "at least five years", SGX said.
SGX will also seek to enhance the relationship between the Baltic Exchange and its contributing panellists and will provide a commitment regarding the future business of freight derivative brokers, it added.
SGX emphasised that there was no assurance that the exclusivity agreement would lead to any definitive agreement or completion of the transaction, and that the bourse will comply with Singapore's listing rules as well as will promptly announce any material developments on the transaction publicly.
Other potential buyers for the Baltic Exchange include the London Metal Exchange, CME Group, ICE and Platts, according to an earlier Reuters report.
- CNA/mz
SGX enters exclusive discussions to buy Baltic Exchange
In February this year, the Singapore Exchange had announced that it had submitted a non-binding bid for the acquisition of the London-based exchange.
A wooden plaque is seen on a wall at The Baltic Exchange in the City of London, Britain March 2, 2016. REUTERS/Toby Melville
SINGAPORE: The Singapore Exchange (SGX) on Wednesday (May 25) said it is entering into exclusive discussions with the Baltic Exchange regarding a cash offer for 100 per cent of the latter's share capital. This comes three months after SGX announced that it had submitted a non-binding bid for the acquisition of the London-based exchange.
In a news release on Wednesday, the SGX said the period of exclusivity for the talks will last from Wednesday to Jun 30 this year. Both exchanges will meet with shareholders of the Baltic Exchange and the wider stakeholder community to explain and discuss the offer.
SGX's chief executive officer, Loh Boon Chye, said this is the 10th year of the two exchanges' relationship.
"We recognise the integral role the Exchange plays within the global shipping community, which we hope to develop for the benefit of the industry as a whole," he added.
SGX said its proposed transaction will "bring together complementary strengths of Singapore and London, two of the world’s most important maritime hubs".
"SGX has been successful in driving the growth of the global dry bulks and freight market and is now a significant provider of clearing and settlement of freight derivatives," it said, adding that both exchanges will benefit from new growth opportunities, including potential new shipping benchmarks and clearing solutions that meet the market’s evolving needs for data and trading.
The proposal also commits to maintaining the significance and relevance of both the Baltic Exchange and SGX, according to the news release.
Under the proposal, the Baltic Exchange will remain at its current headquarters in London and maintain its existing market benchmark production and governance model. It will also keep end-user Baltic data fees and fees for SGX clearing of freight derivatives at current levels for "at least five years", SGX said.
SGX will also seek to enhance the relationship between the Baltic Exchange and its contributing panellists and will provide a commitment regarding the future business of freight derivative brokers, it added.
SGX emphasised that there was no assurance that the exclusivity agreement would lead to any definitive agreement or completion of the transaction, and that the bourse will comply with Singapore's listing rules as well as will promptly announce any material developments on the transaction publicly.
Other potential buyers for the Baltic Exchange include the London Metal Exchange, CME Group, ICE and Platts, according to an earlier Reuters report.
- CNA/mz
