ASX-SGX merger proposal lodged with Foreign Investment Review Board – PerthNow

Posted on March 30, 2011 by

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SINGAPORE’S stock exchange has lodged an application with the Foreign Investment Review Board (FIRB) for its proposed $8.4 billion merger with Australia’s main bourse.

ASX Ltd, which runs the Australian Securities Exchange, and takeover suitor Singapore Exchange Ltd (SGX) last month altered their proposal in order to strengthen the chance of it receiving approval.

“ASX Limited (ASX) advises that Singapore Exchange Limited (SGX) has today lodged a formal application to the Australian Foreign Investment Review Board (FIRB) about the proposed merger of ASX and SGX,” ASX said in a statement after the market closed on Friday.

“ASX and SGX have also amended the Merger Implementation Agreement entered into on 25 October 2010 to the extent required to reflect the new governance arrangements announced on 15 February 2011.”

ASX and SGX say they will make market announcements and update shareholders as approval processes are cleared.

Under the recent changes, a merged entity will now feature a board containing an equal number of Australian and Singapore citizens, with five of each, plus three international board members.

Under the previous proposal, a 15-member board would have featured seven Singaporean citizens.

Senior management, including the Australian business chief executive role, would continue to be based in Australia.

The Australian Competition and Consumer Commission (ACCC) has given its approval, but the green light is still needed from FIRB.

The Australian federal parliament is also required to lift the ownership constraints set out in the Corporations Act.

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Posted in: APAC