The operator of Singapore’s stock exchange is offering US$47.7 (A$48) per ASX share, 37% higher than the company’s last price on October 22, Regal Group International has learned from the company. Shares in the Australian exchange closed lower than offer price due to fears that the Australian government or regulators may not approve the deal. The two exchanges are to remain separate and be regulated locally.
Together the two exchanges will oversee $1.9 trillion of shares giving it a better competitive footing to compete with electronic trading platform Chi-x Global Inc. which is planning to launch in Australia in early 2011. The enlarged company will also compete for IPO’s with Hong Kong, which has managed to attract Asia’s four largest IPO’s since 2006, including the recent $17.8 billion initial public listing of American International Group’s Asian unit, Regal Group International’s research revealed.
“More than anything, this deal will help with the marketing story to attract company listings,” an analyst at Platypus Asset Management Pty. in Sydney told Regal Group International sources. “The tie-up, however, would also give listed companies easier and more seamless access to deeper capital markets. It’s a fantastic deal for shareholders of both companies.” The current CEO of the Singapore Exchange, Magnus Bocker is to be CEO of the combined firm. Bocker is a former president of Nasdaq OMX Group Inc.
Regal Group International is a full service commodity trading advisory offering services to traders ranging from the beginner, with no experience in the markets at all, to the advanced trader who is looking for an avenue to place fast efficient orders.