Australia and Singapore stock exchange's looking at a merger
Posted: Wed Nov 24, 2010 1:40 am
Australia’s stock exchange ASX Ltd has agreed to merge with the Singapore stock exchange (SGX) in a deal that will create the second largest bourse in the Asia Pacific region.
The deal is valued at $8.4 billion and will result in SGX acquiring all outstanding ASX shares through an arrangement scheme, paying $22 in cash, and 3.473 new SGX shares per ASX share.
The deal still requires regulatory approval from both the Australian and Singapore authorities, including Federal Treasurer Wayne Swan, The Monetary Authority of Singapore and the Australian Securities and Investments Commission (ASIC).
The transaction is expected to be approved by both regulators and shareholders during the first half of 2011 and the merger executed during the second half of the year.
The merged entity will have combined revenues of $1.12 billion, and earnings before taxation and interest of $711.6 million.
The market capitalisation of the combination of two exchanges was $12.5 billion on October 22nd.
The combined exchanges would give investors access to in excess of 2700 listed companies from over 20 countries and would provide the largest range of equity, fixed income and commodity derivatives in the Asia Pacific.
“The combination leverage’s the strengths of ASX through its listings, stock options and fixed income franchises, with SGX, the Asian gateway for international listings, equity futures and OTC clearing, to create the regions pre-eminent exchange group,” ASX said in a statement.
Both exchanges will retain their structure as separate legal entities and maintain their respective brands, with the holding company ASX-SGX Ltd listed on both the Singapore and Australian exchanges.
The merged company will have a 15 director board, four of whom will be nominated by the ASX. The chief executive of the combined company is expected to be SGX CEO Magnus Bocker, whilst Chew Choon Seng the chairman elect of SGX is expected to take the role of non-executive chairman, with ASX’s David Gonski to assume the role of deputy chairman.
It will have a board of 15 directors from five countries, four of whom will come from the ASX board – David Gonski, Russell Aboud, Jillian Broadbent and Alan Cameron.
Robert Elston CEO of ASX said that the deal was unanimously approved by the boards of both exchanges.
“In a period of profound structural change in financial markets, ASX has carefully considered its strategic options to enhance its future competitiveness,” he said.
“This combination delivers tangible value today and presents the opportunity for shareholders, customers, employees and other stakeholders to participate in the growth options that this broader based exchange group can make available in the future, whilst preserving strong governance and regulatory oversight in Australia.”
The deal is valued at $8.4 billion and will result in SGX acquiring all outstanding ASX shares through an arrangement scheme, paying $22 in cash, and 3.473 new SGX shares per ASX share.
The deal still requires regulatory approval from both the Australian and Singapore authorities, including Federal Treasurer Wayne Swan, The Monetary Authority of Singapore and the Australian Securities and Investments Commission (ASIC).
The transaction is expected to be approved by both regulators and shareholders during the first half of 2011 and the merger executed during the second half of the year.
The merged entity will have combined revenues of $1.12 billion, and earnings before taxation and interest of $711.6 million.
The market capitalisation of the combination of two exchanges was $12.5 billion on October 22nd.
The combined exchanges would give investors access to in excess of 2700 listed companies from over 20 countries and would provide the largest range of equity, fixed income and commodity derivatives in the Asia Pacific.
“The combination leverage’s the strengths of ASX through its listings, stock options and fixed income franchises, with SGX, the Asian gateway for international listings, equity futures and OTC clearing, to create the regions pre-eminent exchange group,” ASX said in a statement.
Both exchanges will retain their structure as separate legal entities and maintain their respective brands, with the holding company ASX-SGX Ltd listed on both the Singapore and Australian exchanges.
The merged company will have a 15 director board, four of whom will be nominated by the ASX. The chief executive of the combined company is expected to be SGX CEO Magnus Bocker, whilst Chew Choon Seng the chairman elect of SGX is expected to take the role of non-executive chairman, with ASX’s David Gonski to assume the role of deputy chairman.
It will have a board of 15 directors from five countries, four of whom will come from the ASX board – David Gonski, Russell Aboud, Jillian Broadbent and Alan Cameron.
Robert Elston CEO of ASX said that the deal was unanimously approved by the boards of both exchanges.
“In a period of profound structural change in financial markets, ASX has carefully considered its strategic options to enhance its future competitiveness,” he said.
“This combination delivers tangible value today and presents the opportunity for shareholders, customers, employees and other stakeholders to participate in the growth options that this broader based exchange group can make available in the future, whilst preserving strong governance and regulatory oversight in Australia.”