Thursday 4 August 2016 11:38 am

Singapore Exchange agrees £77.6m deal for London’s Baltic Exchange

The Singapore Exchange has agreed a £77.6m takeover deal for the London-based Baltic Exchange.

The £160.41 per share offer has been agreed after months of exclusive discussions between the companies.

The Singapore Exchange said in a statement that, as part of the deal, Baltic shareholders will also receive at least £18.80 in cash as a final dividend.

Read more: Baltic Exchange and Singapore Exchange extend exclusive takeover talks

The companies entered into exclusive takeover talks in May after the Baltic Exchange was linked with a string of suitors.

The financial maritime hub, which is located in the heart of the City of London, was also understood to have attracted interest from the CME Group, Intercontinental Exchange and Platts.

Read more: Why the Baltic Exchange chose talks with Singapore Exchange over others

The London exchange is home to the Baltic Dry Index, which measures the cost of shipping huge quantities of coal, ore, grain and other dry commodities across the world.

After the talks were announced, Baltic Exchange chief executive Jeremy Penn told City A.M. the firm had chosen to have exclusive discussions with Singapore over other exchanges because of its commitment to keeping its headquarters in the City of London.

The Baltic Exchange said in a statement today:

The Baltic Exchange will now consult its major shareholders to secure their support for SGX’s offer. Subject to receiving sufficient support, and to it receiving the endorsement of the Baltic Exchange Board, it is expected that a scheme of arrangement will then be circulated to shareholders and a General Meeting will be announced, for shareholders to vote on an offer from SGX.