Baltic Exchange shareholders approve of acquisition by SGX

Singapore Exchange (SGX) announced today that the shareholders of The Baltic Exchange Limited (Baltic Exchange) have today approved all the resolutions required in connection with the proposed scheme of arrangement for the acquisition of the Baltic Exchange.

Implementation of the Scheme remains subject to the satisfaction of certain conditions which include the High Court making an order sanctioning the Scheme at a Court hearing and the Financial Conduct Authority’s approval of the change of control of Baltic Exchange Derivatives Trading Limited, the regulated entity of the Baltic Exchange.

Commenting on today’s development Loh Boon Chye, CEO of SGX, said:

“We are very pleased at the outcome of the vote and thank Baltic’s shareholders for their strong support. We now look forward to completing the transaction and realising the growth opportunities as we bring together two important maritime centres.”

The proposed transaction, unanimously recommended by the Baltic’s board last month, was approved by shareholders at a general meeting in London. It will now need regulatory approval, which shipping industry sources say is likely to be given.

As data shows the global shipping industry struggles with poor market conditions, last month SGX offered Baltic shareholders 160.41 pounds per share plus 19.30 pounds per share as a final dividend, giving the privately owned business a total valuation of about 87 million pounds ($112 million).

Founded in 1744 as a forum for chartering vessels, the Baltic Exchange now produces benchmark indexes for global shipping rates and owns a trading platform for the freight derivatives market.

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