SGX offers A$8.4-B takeover bid to ASX
The Singapore Stock Exchange is set to offer some A$8.4 billion deal to Australia's ASX that targets to build one of the biggest exchange trading hubs in the Asia-Pacific as competition stiffens in the local arena.
This came in the light of the entry of Chi-X Global acquiring a preliminary license to operate an electronic trading platform in competition with the ASX Ltd.
According to reports, the Singapore bourse will offer A$28 for every ASX shared held, and the remaining to be settled in cash. This is close to a 38 percent premium considering the ASX's closing share price of $34.96 on Friday.
Analysts said the deal should be a "marriage of equals" as both exchanges would likely compliment each other and allow growth beyond their domestic markets.
ASX shareholders including include the National Australia Bank and fund manager Perpetual will be presented the offer today.
The Wall Street Journal said in a related report that in the long term, this deal would be beneficial for both exchanges. It said they could directly rival in terms of size and volume that of Hong Kong and Germany's trade exchanges
The Market Structure Practice, a London-based consultancy, told the Wall Street Journal: "Strategically long-term, in terms of surviving in the Asian market, they have both got to do a deal. And they are probably the least contentious partners for each other."