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The Singapore Exchange (SGX) has announced that it has agreed with The Baltic Exchange Ltd to proceed with the solicitation of support from shareholders of the Baltic Exchange to acquire its issued ordinary share capital for GBP 160.41 in cash per Baltic share. This represents a total consideration of GBP 77.6 million.

It is contemplated that the Baltic shareholders will also receive from the Baltic Exchange at least GBP 18.80 in cash as a final dividend per Baltic share, subject to approval by the Baltic shareholders and conditional upon SGX's proposed cash offer for 100 percent of the Baltic shares becoming effective. This puts the total valuation at a minimum of GBP 86.7 million, the Baltic Exchange said today.

In a statement, SGX explained that "there is no assurance that the exclusivity agreement signed on 25 May 2016 will lead to any definitive agreement(s) or completion of the Potential Transaction".

"SGX will comply with the listing rules of the Singapore Exchange Securities Trading Limited, and will promptly disclose any material developments with regard to the Potential Transaction by way of public announcement," SXG added.

The Baltic Exchange today confirmed that, following agreement with SGX, it will now proceed with the solicitation of support from its shareholders for SGX's offer.

"The Baltic Exchange will now consult its major shareholders to secure their support for SGX's offer. Subject to receiving sufficient support, and to it receiving the endorsement of the Baltic Exchange Board, it is expected that a scheme of arrangement will then be circulated to shareholders and a General Meeting will be announced, for shareholders to vote on an offer from SGX," Baltic Exchange said.