Singapore Exchange (SGX) and The Baltic Exchange have agreed on the terms for a recommended offer by SGX for the entire issued share capital of the Baltic Exchange.
Completion of the proposed acquisition is expected to occur towards the end of November 2016, subject to achieving the necessary shareholder, regulatory and court approvals.
Under the terms of the proposed acquisition, SGX and SGX Baltic Investments have committed to maintain the Baltic’s headquarters in St Mary Axe in London, maintain its existing multiple clearing house model, strengthen the existing market benchmark production and governance model, maintain membership subscription fees, end-user Baltic data fees and SGX clearing fees of FFA contracts at current levels for at least five years, continue to provide a range of membership services including dispute resolution and social and charitable activities, and procure that Baltic and BEISL will use their reasonable endeavours to revise the terms of data licensing and subscription, specifically to clarify that the usage of the Baltic indices and/or data for physical and financial settlement without the involvement of a Baltic panellist is unacceptable unless explicitly permitted by licence (e.g. for clearing houses).
Loh Boon Chye, chief executive of SGX, said: “We are delighted to have received such significant Baltic Exchange shareholder support for this transaction. We look forward to working with the Baltic Exchange to develop new products, benchmarks and services to the benefit of Baltic Members, SGX shareholders and the shipping community worldwide.”
Baltic Exchange chairman Guy Campbell commented: “The proposed acquisition will accelerate the growth and development of the Baltic Exchange beyond what it could achieve on its own. Already a trusted business partner, SGX has committed to retaining the Baltic’s ethos as a membership organisation, retaining our London headquarters and further consolidating the Baltic’s value, influence and reach within the global shipping community.
“Following extensive consultations with stakeholders, over the past few months, the board believes that SGX’s offer is in the best interests of Baltic Exchange shareholders, members, panellists, employees and of the broader London maritime hub, from where it will continue to be based.”
© 2023 Riviera Maritime Media Ltd.