ASX and Singapore Stock Exchange in $8.4 billion merger
From: AAP October 25, 2010 12:25PM
THE operator of Australia's stock exchange, ASX, has entered into an agreement to merge with the Singapore Stock Exchange (SGX), to create the second largest exchange in the Asia Pacific region.
Under the $8.4 billion plan, SGX will buy all the shares in ASX through a scheme of arrangement, paying $22 cash and 3.473 new SGX shares for each ASX share.
The deal values the ASX at $8.4 billion, or $48 per ASX share.
Shares in ASX traded last at $34.96, before entering a trading halt late on Friday.
The merger remains subject to significant regulatory hurdles in Australia and in Singapore, including the approvals of the Treasurer Wayne Swan, the Australian Securities and Investments Commission (ASIC), and the Monetary Authority of Singapore.
Both parties expect necessary shareholder meetings and court proceedings to take place in the first half of 2011, and the merger to be implemented in the second half of the year.
The combined entity will have pro-forma revenues of about $US1.1 billion ($1.12 billion) and earnings before interest and tax of about $US700 million ($711.6 million).
The combined market capitalisation of the two groups was about $US12.3 billion ($12.5 billion) at October 22.
The merged entity would provide investors access to over 2700 listed companies from over 20 countries, and the world's second largest grouping of resources stocks.
It also would include the largest range of Asia Pacific equity, fixed income and commodity derivatives, with more than 400 contracts from over 10 countries.
"The combination leverages 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 preeminent exchange group," ASX said.
From: AAP October 25, 2010 12:25PM
THE operator of Australia's stock exchange, ASX, has entered into an agreement to merge with the Singapore Stock Exchange (SGX), to create the second largest exchange in the Asia Pacific region.
Under the $8.4 billion plan, SGX will buy all the shares in ASX through a scheme of arrangement, paying $22 cash and 3.473 new SGX shares for each ASX share.
The deal values the ASX at $8.4 billion, or $48 per ASX share.
Shares in ASX traded last at $34.96, before entering a trading halt late on Friday.
The merger remains subject to significant regulatory hurdles in Australia and in Singapore, including the approvals of the Treasurer Wayne Swan, the Australian Securities and Investments Commission (ASIC), and the Monetary Authority of Singapore.
Both parties expect necessary shareholder meetings and court proceedings to take place in the first half of 2011, and the merger to be implemented in the second half of the year.
The combined entity will have pro-forma revenues of about $US1.1 billion ($1.12 billion) and earnings before interest and tax of about $US700 million ($711.6 million).
The combined market capitalisation of the two groups was about $US12.3 billion ($12.5 billion) at October 22.
The merged entity would provide investors access to over 2700 listed companies from over 20 countries, and the world's second largest grouping of resources stocks.
It also would include the largest range of Asia Pacific equity, fixed income and commodity derivatives, with more than 400 contracts from over 10 countries.
"The combination leverages 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 preeminent exchange group," ASX said.
