Baltic Exchange shareholders approve takeover by Singapore Exchange
LONDON, Sept 26 (Reuters) - Baltic Exchange shareholders on Monday approved an 87 million pound ($112 million) takeover by Singapore Exchange for one of London's oldest institutions, in a deal that will give SGX access to the multi-billion-dollar freight derivatives market.
The proposed transaction, unanimously recommended by the Baltic's board last month, was approved by shareholders at a general meeting in the historic City of London (LSE: CIN.L - news) . It will now need regulatory approval, which shipping industry sources say is likely to be given.
As the global shipping industry struggles with poor market conditions, SGX offered - after months of talks - 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.
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.
The Singapore Exchange, started in 1999, has made its offer as freight costs stay pressured, after a slump in commodity markets coincided with an increase in the number of vessels. ($1 = 0.7739 pounds) (Reporting by Jonathan Saul, Editing by Veronica Brown and Dale Hudson)