SGX & LSE To Enable Cross-Trading Of Stocks
Singapore Exchange (SGX) has teamed up with the London Stock Exchange (LSE) to offer cross-trading of several blue-chip securities listed on their respective markets. The two bourse operators signed a memorandum of understanding that allows SGX trading members to trade FTSE100 securities via GlobalQuote Board while LSE members will be able to trade 36 securities of Singapore’s leading indices on LSE’s newly created International Board. The collaboration will enable investors to have access, over extended hours, to the most actively traded securities in both markets, providing them with more opportunities for investment, trading, and risk management. For issuers in both markets, the initiative will offer quotation on a new market without the need for a separate listing, giving access to a new investor audience and the opportunity to benefit from increased stock liquidity. The two bourses are still working on securing regulatory approvals related to clearing and settlement.
Significance: Notably, Magnus Bocker, chief executive of SGX is optimistic that the move will deliver the SGX Asian Gateway offering with the higher coverage of GlobalQuote, ability to raise the overseas profile of top Singapore-listed firms and effectively allowing investors to act quickly on information.
Shareholders Of Orchard Parade Gives Green Light For Proposed Hospitality Trust
Shareholders of Orchard Parade Holdings, in its extraordinary general meeting yesterday, had voted in favour of the company’s proposed restructuring. They have agreed on the injection of its three hospitality assets into a proposed Far East Hospitality Trust to be listed on the SGX as well as the acquisition of the hospitality management business and selected healthcare properties from Far East Organisation via an asset swap transaction. As part of the transactions, shareholders also approved a special dividend and a dividend in specie of the company’s 14.5 percent shareholding in Yeo Hiap Seng (YHS) as well as a change of name to “Far East Orchard Limited” to better reflect its close alignment with its substantial shareholder and leverage on the “Far East” brand.
Significance: This is a significant milestone for Orchard Parade to enhance its position as a vertically-integrated hospitality operator, as the company participates more actively in its property development business as well as expand into the new businesses of hospitality management and healthcare real estate.
Asia Pacific Breweries Extends Partnership in Mongolia
Asia Pacific Breweries (APB) announced that it is extending its joint venture partnership in Mongolia to a new level. This development will see APB purchasing 27,516,387 ordinary shares of Mongolian Beverages Company and Grandkhaan Holdings for MNT 29.1 billion (approximately $27.7 million). The deal will see APB expanding its business scope and opportunities with venture into vodka and spirits that will enhance APB’s growth in the Mongolian alcohol market. Upon completion of the deal, both the beer and vodka businesses will share the same sales and distribution infrastructure. This means that a larger portfolio of products can be delivered to a wider reach of outlets and markets more efficiently, thereby improving margins.
Significance: APB’s diversification into vodka will strategically enable the company realise significant synergies, build a multi-beverage portfolio to ensure its relevance, sharpen its competitive edge and drive greater top line gain in Mongolia.