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Singapore Exchange makes $103m offer for Baltic Exchange

The Singapore Exchange (SGX) is going ahead with the solicitation of support from shareholders in the Baltic Exchange, for which it has launched a cash offer worth around £77.6m ($103m) in total.

SGX has offered Baltic shareholders a price of £160.41 for each of their ordinary shares in the London-based freight exchange.

Baltic shareholders could also receive at least £18.80 per share in cash as a final dividend, subject to approval by the Baltic’s shareholders and on the condition that SGX’s proposed offer for 100% of the share capital becomes effective. This would boost the Baltic’s total valuation to a minimum of £86.7m ($115.5m).

The Baltic Exchange today said it will now consult its major shareholders to secure their support for SGX’s offer.

The two sides have been holding exclusive talks since May 25, but today the SGX reiterated again that no definitive agreements were assured.

Many of the Baltic’s shipbroker panellists previously objected to the takeover. Ten major shipbrokers formed Competitive Ship Brokers Limited (CSBL) to oppose the sell-off, but their initial grievances appear to have been resolved.

CSBL publicaly welcomed the takeover in late July, after a proposed agreement was drawn up to formalise the relationship between the Baltic Exchange and its panellists. The proposed agreement will become effective on and subject to completion of the acquisition.

“We believe that SGX is a good home for the Baltic Indices and a supportive partner for panellists,” the group’s chairman Gary Weston said.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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