SINGAPORE EXCHANGE LIMITED
SGX
S68.SI
SGX: GPB77.6m bid for Baltic Exchange
- Singapore Exchange has finally released more details of its bid for The Baltic Exchange, where it is making an offer of GBP160.41 (S$187.43 per share based on current exchange rate) cash per share or a total consideration of GBP77.6m (or S$136.68m).
- As a recap, SGX signed the exclusivity agreement on 25 May 2016. In an earlier announcement, the proposed partnership aims to explore new shipping benchmarks and clearing solutions.
- In addition, it was shared that it intends to keep the Baltic Exchange’s headquarters in London, maintain the existing market benchmark production and governance model, and keep end-user Baltic data fees and fees for SGX clearing of freight derivatives at current levels for at least five years.
- We see this as another avenue for SGX’s to expand its offerings as current market conditions are fairly challenging, especially for its equities trading business.
- We are maintaining our HOLD rating and fair value estimate of S$7.36.
Carmen Lee
OCBC Securities
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http://www.ocbcresearch.com/
2016-08-05
OCBC Securities
SGX Stock
Analyst Report
7.36
Same
7.36
