Monday, October 25, 2010
Singapore stock exchange bids $8.2bn for Australian ASX
Singapore hopes to strengthen its position as a financial centre
The Singapore stock exchange (SGX) has unveiled a multi-billion dollar bid for the company that owns the Australian Stock Exchange (ASX) in Sydney.
If approved, the $8.2bn takeover would mark the first stock exchange merger in the Asia Pacific region.
The deal would enhance Singapore as a major financial hub in the region and benefit Australian investors by giving them greater access to Asian markets.
A merged exchange would hope to compete more effectively with Hong Kong.
It would be the second-largest exchange in the region, SGX chief executive Magnus Bocker said on Monday.
The Singapore bid values ASX at A$48 ($47.50) per share, nearly 40% higher its more recent traded price.
The offer is made up of A$22 plus 3.473 SGX shares for each ASX share.
Currently, the Singapore exchange is the second-largest in Asia, with Sydney ranked third.
Any merger deal would require approval by the regulatory authorities in both countries.