Singapore Bourse to Buy Baltic Exchange in $114 Million Deal

  • SGX agrees to keep Baltic Exchange’s headquarters in London
  • Acquisition is expected to complete by the end of November

Singapore Exchange Ltd. has agreed to buy market-information service Baltic Exchange in a deal valued at 87 million pounds ($114 million).

The purchase of the Baltic Exchange, which has its roots in an 18th Century City of London coffee house, is expected to complete toward the end of November, SGX said in a statement on Monday. The Singaporean market operator said it would pay 77 million pounds in cash and Baltic Exchange would pay a further 10 million pounds to its shareholders through a special dividend.

Singapore’s exchange also said it would keep Baltic’s headquarters in London at St. Mary Axe.

“The proposed acquisition will accelerate the growth and development of the Baltic Exchange beyond what it could achieve on its own,” Guy Campbell, chairman of the Baltic Exchange, said in the statement.

At least 75 percent of Baltic shareholders must approve the transaction, which still requires regulatory and court approval. Nomura International Plc advised Baltic’s board. Baltic generated 6 million pounds of sales in the year ending in March.

Loh Boon Chye, chief executive officer of SGX, said in the statement that the bourse will work with Baltic Exchange to develop new products and benchmarks. 

“Baltic may not be right up there, but at least it shows to the critics that SGX is trying to do something,” said Song Seng Wun, an economist at CIMB Private Banking in Singapore. “The deal gives investors a bit more in terms of connectivity and it’s SGX’s way of breathing a little life.”

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