SGX and ASX announce plan for merger

first_img Show Comments ▼ Monday 25 October 2010 8:07 pm THE Singapore stock exchange (AGX) announced an $8.3bn (£5.2bn) takeover bid for the Australian stock exchange (ASX) yesterday, in an effort to boost its position in the region and compete with Hong Kong. The new exchange would be the second largest in the Asia Pacific region by number of companies listed, at 2,700 firms from around 20 countries. But the exchange would still lag behind Tokyo, Hong Kong and Shanghai in terms of market value. The combined company, ASX-SGX, is expected to generate revenues of approximately $1.1bn and earnings in the region of $700m.ASX and SGX will remain separate with locally regulated entities, and will also maintain their existing brands. SGX will pay A$22 cash and 3.473 new SGX shares for each ASX share, valuing the ASX at A$8.4bn, or A$48 a share. The deal is pitched at a 37 per cent premium to Friday’s closing price.However, the deal was received badly by investors in Singapore, where SGX shares closed down six per cent at S$8.950. ASX shares surged 19 per cent to A$41.75 – the biggest rise since November 1998. whatsapp KCS-content whatsapp Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Share SGX and ASX announce plan for merger Tags: NULLlast_img

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