Singapore Exchange makes offer to Baltic Exchange

17.08.2016

The Singapore Exchange (SGX) is going ahead with the solicitation of support from shareholders in the Baltic Exchange, for which it has launched a cash offer worth around £77.6m ($103m) in total, informed Splash 24 portal. SGX offered GBP 160.41 per ordinary share to shareholders of the Baltic Exchange.

Shareholders of the Baltic Exchange could also get at least GBP 18.80 in cash per share as final dividend, subject to approval by the Baltic’s shareholders and on the condition that SGX’s proposed offer for 100% of the share capital becomes effective. As a result, the total market value of the Baltic Exchange may increase to GBP 86.7 mln. or USD 115.5 million. Previously, the Baltic Exchange was valuated at GBP 84 mln, or USD 117 mln.

The two sides have been holding exclusive talks since May 25, but today the SGX reiterated again that no definitive agreements were assured.

Many of the Baltic’s shipbroker panelists previously objected to the takeover. Ten major shipbrokers formed Competitive Ship Brokers Limited (CSBL) to oppose the sell-off, but their initial grievances appear to have been resolved.

The Baltic Exchange, founded in 1744, has about 380 shareholders, most of them from shipbuilding sector. The Exchange publishes daily indices, including the Baltic Dry Index - the key index, showing freight rates for dry bulk cargo transportation.

 

 

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