Is SGX overpaying The Baltic Exchange?

The price is thrice The Baltic Exchange’s book value.

Singapore Exchange offered to buy The Baltic Exchange at a steep price of around $137m (GBP77.6m) cash, almost thrice the book value of GBP25.95m for the shipping market information source, analysts said.

“On a PE basis, it seems rather expensive as it works out to more than 50x FY15 earnings, as against SGX’s 23x FY16 and 21x FY17F earnings,” DBS Group Research said.

The purchase would boost The Baltic Exchange’s total valuation to about GBP86.7m. DBS Group Research believes, however, that it’s contribution to SGX would be minimal, as The Baltic Exchange posted a net profit of GBP1.34m on revenue of GBP6.03m for FYMar 15 compared to SGX’s net profit of S$349m for FY Jun16. SGX has cash of about S$866.3m as at 30 Jun 16.

SGX is keen on getting its hands on The Baltic Exchange as it would boost its plans to diversify revenue streams from the sluggish Securities market. It would also slacken SGX’s reliance on the derivatives market, DBS Group Research explained. 

Get Singapore Business Review in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

This is supported by Lao PDR, Thailand, and Malaysia.
Re-exports, meanwhile, saw a jump by 19% in the same month.
SNACK Investment will be available for consumers for as low as $1.
The programme is done in partnership with 10x1000 Tech
The maturity date for these notes will be in 2028.
Assets in this category experienced a jump to $10b in less than three years.
CityDev, SATS, and Mapletree Logistics Trust showed the most growth.
Limiting the entry of foreign workers would not result in more jobs for Singapore, Wong said.
They also agree to explore other collaboration opportunities.
It creates a one-stop ecosystem that connects its users to EV car dealers.
Its passenger capacity remained steady at 32% of pre-COVID levels.
This would increase the opportunities for cross-border investments.
A return to pre-pandemic levels, however, could take two to three years.
HongKongLand and SGX showed the most growth today.