No wonder SGX shares fell, and it’s not juz dilutive effect of issusing more shares.
There is little synergy. The two mkts remain separate. And cost savings is “peanuts” — US$30m in US$8.3 bn deal.
The deal only works because SGX
– will take on US$3.8bn of debt
– trades at 28x PE versus ASX 23x.
Article from Breakingviews
All in all, if it goes thru SGX shareholders are likely to be the losers. Great deal for ASX shareholders. What price S’pore Inc’s ambition for SGX to try to keep up with HK’s stock exchange?