The Board of Directors (the "SGX Board") of Singapore Exchange Limited ("SGX") is pleased to announce that SGX and ASX Limited ("ASX") have entered into a Merger Implementation Agreement ("MIA") today to combine (the "Proposed Combination") to enable customers globally to capitalise on listing, trading, clearing and settlement opportunities created through the expanded platforms, leveraging on the importance of Asia Pacific as the driver of global growth.
Rationale for the Proposed Combination
The Proposed Combination will bring together the complementary businesses of two successful exchanges in the Asian time zone, with internationally recognised regulatory standards. The combination leverages the strengths of ASX through its listings, stock options and fixed income franchises, with SGX, the Asian gateway for international listings, equity futures and OTC clearing, to create the region's pre-eminent exchange group.
The combined group will augment Australia's financial market and funds management industry through direct participation in Asian growth, and increase ASX's and SGX's competitiveness in a changing global markets landscape. As proven platforms for raising capital and managing price risk for the resource sector, ASX and SGX will build on existing distribution and clearing capabilities, and intend to play an important role in establishing price discovery for global commodities in Asia Pacific.
The combined exchange group, ASX-SGX Limited1, will have pro forma revenues of approximately US$1.1 billion and pro forma earnings before interest and income tax of approximately US$700 million, based onnthe audited financial statements of ASX and SGX, each for the financial year ended 30 June 2010 ("FY2010").