SGX has moved closer to clinching an acquisition of the Baltic Exchange, after agreeing terms with the UK bourse and winning backing from shareholders representing a majority of its share capital.

The Singapore exchange and the Baltic said on Monday that they had agreed a cash bid of £160.41 per share and a final dividend of £19.30 per share, up from £18.80 offered two weeks ago. The deal values the Baltic at about £87m, writes Jeevan Vasagar.

The UK bourse compiles the Baltic Dry Index, which charts the cost of transporting commodities in bulk.

If approved by a vote of shareholders, the deal is expected to be completed by the end of November. SGX has undertakings to back the deal from shareholders representing about 74 per cent of the Baltic’s share capital.

Loh Boon Chye, chief executive of SGX, said:

We look forward to working together with the Baltic Exchange to develop new products, benchmarks and services to the benefit of Baltic Members, SGX shareholders and the shipping community worldwide.

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