SGX makes offer for Baltic Exchange

However, the $113.9 million deal is still subject to approval by the Baltic Exchange shareholders.    The Singapore Exchange (SGX) said it is moving forward with its plan to acquire London’s Baltic Exchange in a deal that values the exchange at 86.7 million British pounds (U.S. $113.9 million).
   The deal includes both the 160.41 pounds Singapore is offering in cash for each Baltic share and an 18.80 pound final cash dividend Baltic shareholders would receive.
   However, the deal is subject to approval by the Baltic shareholders and conditional upon SGX’s proposed cash offer for 100 percent of the Baltic shares becoming effective.
   The Baltic Exchange said it will consult with its major shareholders to secure their support for the offer. “Subject to receiving sufficient support, and to it receiving the endorsement of the Baltic Exchange Board, it is expected that a scheme of arrangement will then be circulated to shareholders and a general meeting will be announced, for shareholders to vote on an offer from SGX,” the Baltic Exchange said.
   Founded in 1774, about 650 companies have shares in the Baltic Exchange, which develops and publishes information about freight rates in the dry bulk and tanker shipping markets such as the widely followed Baltic Dry Index. This information is then used to underpin freight derivatives or forward freight agreements.