Australian bourse operator ASX says it continues to believe in the business logic of a proposed $7.6 billion (R52.5bn) takeover by Singapore rival SGX and sees a need to take part in global bourse consolidation.
|||Australian bourse operator ASX says it continues to believe in the business logic of a proposed $7.6 billion (R52.5bn) takeover by Singapore rival SGX and sees a need to take part in global bourse consolidation.
It made the comments in a letter to shareholders released yesterday as it ramps up lobbying efforts to try to overcome political opposition to the deal, which comes amid a wave of bourse consolidation globally.
ASX shares, which fell earlier this week on media reports that the Australian government was set to reject the merger, edged up 0.3 percent to A$34.64 (R241.73) by 2pm in Sydney. SGX shares were down 0.32 percent in late afternoon trade.
“The ASX board maintains a strong belief in the need to participate in global exchange consolidation and in the business logic of the announced combination with Singapore,” it said in a statement.
“The recent merger announcements by the London and Toronto exchanges, as well as by NYSE Euronext and Deutsche Boerse, underscore the dynamic forces driving developments among global exchanges.”
The deal is currently under review by the Foreign Investment Review Board (FIRB), which has up to 120 days to make a decision.
A source with knowledge of the deal said the SGX filing with the FIRB “is a long application and in a complicated manner. It may take longer than a standard application.” But he said SGX was unlikely to give more concessions as stated by chief executive Magnus Bocker.
Peter Elston, a strategist at Aberdeen Asset Management Asia, which owns both ASX and SGX shares, said he sensed there was a better chance of the deal going through than what the market believed.
“The fact of the matter is that ASX doesn’t perform a regulatory function. It’s just an exchange. The regulatory function is outside the exchange,” Elston said.
Elston said if the deal was not approved, it would be bad for ASX. – Reuters
Source: http://www.iol.co.za/buyout-by-singapore-rival-is-vital-asx-says-1.1047407
Equality Family finances Gordon Brown European debt crisis Nepal Poland
Walang komento:
Mag-post ng isang Komento