The Baltic Exchange board has unanimously backed a takeover bid from Singapore Exchange Ltd , a deal that will give SGX access to a trading platform for the multi-billion dollar freight derivatives market.
On Aug. 4, SGX offered shareholders in London's privately owned Baltic Exchange 160.41 pounds in cash per share, for a total 77.6 million pounds ($102 million), and urged them to back the deal.
The exchanges have agreed on the terms of the SGX offer, they said in a joint statement on Monday.
Founded in 1744 as a forum for chartering vessels, the Baltic Exchange now produces benchmark indexes for global shipping rates. SGX's offer comes as freight costs wallow at record lows, after a slump in commodity markets coincided with an increase in the number of vessels.
(Reporting by Aradhana Aravindan and Anshuman Daga)