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Singapore stock exchange bids $8.2bn for Australian ASX | Singapore stock exchange bids $8.2bn for Australian ASX |
(about 2 hours later) | |
The Singapore stock exchange (SGX) has unveiled a multi-billion dollar bid for the company that owns the Australian Stock Exchange (ASX) in Sydney. | 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. | 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. | 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. | A merged exchange would hope to compete more effectively with Hong Kong. |
ASX shares soared more than 20% to A$43.49 ($43.17) after the announcement, while SGX shares fell back 4.35% to S$9.13 ($7.05). | |
A merger would create the second-largest exchange in the region, SGX chief executive Magnus Bocker said on Monday. | |
"The capital flow we see today is really changing from West to East," said Mr Bocker. "This will be the gateway to Asian capital markets." | |
The Singapore bid values ASX at A$48 ($47.50) per share, nearly 40% higher its latest traded price before the announcement. | |
The offer is made up of A$22 plus 3.473 SGX shares for each ASX share. | 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. | 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. | Any merger deal would require approval by the regulatory authorities in both countries. |