Baltic Exchange's board recommends that shareholders accept SGX's offer (Amended)

THE Baltic Exchange's board has unanimously recommended that its shareholders vote in favour of Singapore Exchange's (SGX) proposed acquisition.

In an announcement on Monday evening, SGX said that it has entered into an implementation agreement with the Baltic Exchange that sets out the terms by which the latter will be acquired by an indirect wholly-owned subsidiary of SGX.

So far, SGX has received irrevocable undertakings from Baltic shareholders representing 74 per cent of total votes in favour of the acquisition.

It needs at least 75 per cent for the acquisition to go through, on top of approval from the Financial Conduct Authority in the UK and sanction of the scheme by the UK court.

As earlier announced, SGX said Baltic shareholders will receive £160.41 per share in cash. They will also receive £19.30 per share in cash as a special dividend. Together, these value the Baltic Exchange's entire issued share capital at about £87 million (S$154 million).

SGX first entered into exclusive negotiations with the Baltic on May 25, beating other suitors for the maritime data provider which reportedly included the London Metal Exchange, CME Group, ICE, China Merchants Group and Platts.

Amendment note: An earlier version of the article stated that Baltic Exchange shareholders will receive £18.80 per share as a special dividend. The figure has been revised upwards to £19.30 per share in the latest announcement. The article has been amended to reflect this.