Singapore 23/08/2016 - Singapore Exchange (SGX) will buy the Baltic Exchange for around 87 million pounds ($114 million) in a deal that is expected to close by end-November.
Both companies have signed an implementation agreement after a unanimous decision by the Baltic board to recommend shareholders vote in favour of the deal, SGX said in a statement on Monday.
Earlier this month, SGX had made a formal offer to buy the exchange - the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts.
Under agreed terms, Baltic Exchange shareholders will be entitled to receive 160.41 pounds in cash for each Baltic Exchange Share, and 19.30 pounds in cash per Baltic Exchange share as a final dividend. The SGX said earlier in August that Baltic shareholders would receive at least 18.80 pounds in cash as a final dividend.
SGX said that it will keep the Baltic Exchange's headquarters in St Mary Axe in London, and maintain membership and end-user data fees charged by the Baltic Exchange at current levels for at least five years.
“We are delighted to have received such significant Baltic Exchange shareholder support for this transaction. We look forward to working together with the Baltic Exchange to develop new products, benchmarks and services to the benefit of Baltic Members, SGX shareholders and the shipping community worldwide,” Loh Boon Chye, CEO of SGX, said in the statement.
Closure of the deal is still subjected to shareholder, regulatory and court approvals.
The Baltic reported an operating profit after tax of 1.34 million pounds in the year ended March 31.