It has been two weeks since the Baltic Exchange began its consultation exercise with members, shareholders, panellists and other stakeholders over its potential sale to Singapore Exchange (SGX). Three open meetings have been held in London and Geneva with further ones scheduled for Singapore on 16 June, Oslo on 21 June and Copenhagen on 22 June. 30 face to face meetings have been held and this week the Baltic Exchange management team is at Posidonia, meeting and discussing the potential sale with the Greek shipping community as well as the many international players gathered in Athens.
Key questions that have emerged from the consultation exercise so far include:
- Great interest in the possibilities opened up to the Baltic by a significant investment from a successful exchange with a reach into Asian and global commodity markets
- Strong support from the majority of index panel members
- The possibility of the purchase being transacted as a part share/cash offer
- The form of guarantee that will ensure SGX honours it commitments to maintain fee levels and not compete with panel members
- The importance of developing a governance model that ensures an independent future for the Baltic
- Whether or not the Baltic’s information services can be considered as a separate commercial entity
Negotiations with SGX continue, with much attention on the governance model. The period of exclusive negotiations is set to end 30 June, after which period the Baltic Board will decide whether or not to make a recommendation for a sale.
The Baltic Exchange