SGX offers $102.6 million for Baltic Exchange

AUGUST 4, 2016 — The Singapore Exchange (SGX) is making a GBP 77.6 million (about $102.6 million) bid for London’s historic  Baltic Exchange.

SGX and the Baltic Exchange announced in May (see earlier story) that they were entered into exclusive discussions  regarding a cash offer for 100% of the share capital of the Baltic Exchange.

Today SGX said it had “agreed with The Baltic Exchange Limited (Baltic Exchange) to proceed with the solicitation of support from shareholders of the Baltic Exchange (Baltic Shareholders) to acquire their issued ordinary share capital of the Baltic Exchange (Baltic Shares) for £160.41 in cash per Baltic Share.

“This represents a total consideration of £77.6 million.

“It is contemplated that the Baltic Shareholders will also receive from the Baltic Exchange, at least £18.80 in cash as a final dividend per Baltic Share, subject to approval by the Baltic Shareholders and conditional upon SGX’s proposed cash offer for 100% of the Baltic Shares (Potential Transaction) becoming effective.”

The Baltic Exchange said it will now proceed with the solicitation of support from Baltic Exchange shareholders for SGX’s offer and that “subject to receiving sufficient support, and to it receiving the endorsement of the Baltic Exchange Board, it is expected that a scheme of arrangement will then be circulated to shareholders and a General Meeting will be announced, for shareholders to vote on an offer from SGX.”