SGX enters talks with Baltic Exchange for acquisition

SGX in talks with Baltic Exchange about a cash offer for 100% of the share capital at the exchange.

The Singapore Stock Exchange (SGX) has entered into exclusive discussions with the Baltic Exchange for its acquisition, beginning 25 May and expiring 30 June this year.

The talks surround SGX’s cash offer for 100% of the share capital of the Baltic Exchange, following the submission of a non-binding bid for the acquisition back in February.

The process will see shareholders at both exchanges gather to discuss details of the possible agreement, although SGX has emphasised “there is no assurance that the entry into the exclusivity agreement will lead to any definitive agreement(s) or completion of the transaction”.

SGX proposed a commitment to keeping the Baltic Exchange’s headquarters based in London, maintaining existing benchmark production and governance model, keeping end-user Baltic data fees and fees for SGX clearing of freight derivatives at current levels for at least five years.

Chief executive officer at SGX, Loh Boon Chye, explained the exchange is glad of the opportunity for exclusive discussions, and eager to further discuss its proposals with the Baltic Exchange.