Shareholders have voted to approve the terms of the Singapore Exchange’s (SGX) acquisition of the Baltic Exchange, which from 2017 will be headed up by Mark Jackson, currently chief commercial officer of AM Nomikos Group.
Jackson will replace the Baltic’s current CEO Jeremy Penn, who last year announced his intention to stand down this summer after 13 years in the role.
Jackson was appointed a director of The Baltic Exchange in 2004 after a career at EA Gibson and for AM Nomikos. In 2005, he became chairman of the freight indices and futures committee, was elected vice-chairman of the Baltic in 2007 and served as chairman from 2009 until 2012.
Loh Boon Chye, CEO of SGX, said “as a past chairman of the Baltic, Mark has already demonstrated a huge personal commitment to the business and ethos of the Exchange”.
SGX has made a recommended offer of £87m (S$153m) in cash, in which Baltic shareholders will be offered a price of £160.41 for each of their ordinary shares in the London-based freight exchange.
Baltic shareholders will also receive at least £19.30 per share in cash as a final dividend, on the condition that SGX’s proposed offer for 100% of the share capital becomes effective. This will boost the Baltic’s total valuation to a minimum of £86.7m ($115.5m).
As part of the scheme of arrangement, membership subscription fees, end-user Baltic data fees and SGX clearing fees for FFA contracts will all remain at current levels for at least five years.
SGX has also promised to maintain the existing multiple clearing house model and to strengthen production of the Baltic’s existing market benchmark, among other terms.
Both parties have also committed to maintaining the Baltic’s headquarters in St Mary Axe, London. It had been speculated previously that the building would be sold off.
The deal is now pending approval by the UK Financial Conduct Authority.