One of Asia’s leading exchange operators, Singapore Exchange Limited (SGX), today revealed progress on its bid to acquire London-headquartered Baltic Exchange Limited (Baltic Exchange), a transaction aimed to strengthen two key maritime hubs between the U.K. and Singapore, supported by the synergy of the two financial market operators.
This development follows nearly three months after SGX initially announced its intentions in February to acquire the company and said today in a statement that an agreement was reached to enter into exclusive talks based on a cash offer to acquire 100% of Baltic Exchange’s share capital in the proposed transaction.
Exclusive talks to commence
The Baltic Exchange provides financial products including trading and settlement of physical and derivative shipping contracts, as well as acting as a source for independent Maritime market data helping to support the global shipping industry. The bid remains non-binding pending subsequent steps that would be needed to close the transaction, as moves between customary stages.
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Commenting on the company statement, SGX CEO Loh Boon Chye said: “We are delighted to have been granted exclusivity to discuss this potential transaction and look forward to working with Baltic Exchange’s shareholders, members and relevant stakeholders to further discuss our proposals.
Derivative Shipping contracts
Mr. Chye added regarding the long-standing relationship with the London company: “This is the tenth year of our relationship with the Baltic Exchange and 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.”
Members of each company will hold meetings together to discuss the deal, along with shareholders and other potentially affected parties, to talk about the offer which will remain exclusively until June 30th 2016.