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Baltic Exchange sets out new agreement with shipbroker panellists

Baltic Exchange sets out new agreement with shipbroker panellists
Baltic Exchange has sent a new agreement to all its panelists that should pave the wave for a finalisation of an offer by the Singapore Exchange (SGX) to make a offer to buy the London-based shipping institution.

The Baltic has today sent for signature to its 48 shipbroker panellists a new agreement that documents and formalizes the relationship between the Baltic and the panelists and would become effective on completion of an acquisition by the SGX.

The Baltic said its board it expected the agreement to be welcomed by the panelists.

It is understood some of the smaller panellists felt they were being pushed out and indeed some had formed an association Competitive Ship Brokers Limited.

“Formalising the arrangements between the Baltic Exchange and its panellists is an important step that enables the offer discussions with the Singapore Exchange to move forward. We have listened and taken on board feedback from panellists and have drawn up an agreement that we believe meets all parties’ aspirations,” said Guy Campbell chairman of the Baltic.

“Baltic Exchange information underpins the global bulk shipping markets and this agreement will also provide a higher level of certainty to end-users of the information.”

SGX has been in exclusive discussions with the Baltic on possible acquisition since 25 May this year, and the original period of exclusivity was extended from the end of June to the end of August.

SGX has made a number of commitments if its bid is successful including maintaining Baltic’s London headquarters at St Mary Axe, to preserve the Baltic’s current ethos as a membership organisation with member representation whose market activities are governed by the Baltic Code, and maintain membership subscriptions and data fee levels for members for five years.

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