Date
23 May 2017
Acquiring the Baltic Exchange would significantly boost Singapore Exchange’s derivatives business. Photo: Reuters
Acquiring the Baltic Exchange would significantly boost Singapore Exchange’s derivatives business. Photo: Reuters

Singapore Exchange bids US$103 mln for London’s Baltic Exchange

Singapore Exchange Ltd. said it has offered to buy the Baltic Exchange for £77.6 million (US$103.4 million).

The deal, if sealed, would mark the second acquisition of a London exchange by an Asian operator, after the Hong Kong Exchanges & Clearing Ltd. (00388.HK) bought the London Metal Exchange in 2012, the Wall Street Journal reported.

The Singapore bourse is ready to pay £160.41 for each Baltic Exchange share in cash, and give Baltic Exchange shareholders at least £18.80 a share in cash as a final dividend, the newspaper said, citing a statement from the company.

Singapore Exchange and the Baltic Exchange entered into exclusive talks on May 25, said the Journal, which reported on Wednesday that a deal was likely to be announced soon.

Founded in 1744, the Baltic Exchange provides daily freight market prices and maritime shipping cost indices used globally for the trading and settlement of physical and derivative contracts.

The deal would significantly boost Singapore Exchange’s derivatives business and contribute to making the city state a global maritime financial center, the WSJ said.

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RA/CG

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