The period of exclusive discussions between the Singapore Exchange (SGX) and the Baltic Exchange has been extended by a further two months, from June 30 to August 31.
The two are discussing the terms of a cash offer from SGX for 100% of the share capital of the Baltic Exchange.
“SGX and the Baltic Exchange have together met with shareholders and much of the stakeholder community over the past weeks to discuss the transaction and have made good progress in consultations,” SGX said in a release today.
The two parties signed an exclusivity deal for the discussions on May 25 but closure of the deal is not assured.
Many of the Baltic’s shipbroker panellists have objected to the takeover and formed Competitive Ship Brokers Limited (CSBL), which has complained that “many of the major international shipbroking firms feel a need to have a single voice in a challenging market environment which is undergoing significant change”.
“It is our intention to agree with SGX a standard panellist contract that addresses all issues of significance for panellists (including those which have been raised by CSBL), whilst also outlining proposals to enhance the governance and independence of the Baltic,” Guy Campbell, Baltic Exchange chairman, said earlier this month.