green-light-for-megaexchange-merger-in-australia

Green light for mega-exchange merger in Australia

Sydney Futures Exchange shareholders vote in favour of a merger with the Australian Stock Exchange creating the ninth largest exchange in the world.

Cherie Marriott

July 06, 2006

Against many odds, SFE Corp shareholders have approved a A$4.56 billion merger with the company's larger local peer the Australian Stock Exchange following a friendly takeover bid launched in March.

In a vote cast on Wednesday, 93% of shareholders backed the deal, when the board needed only 50% support to push the deal through.

The cashscrip deal will deliver SFE investors a handsome capital return, with the ASX offering 0.51 ASX shares per SFE share. The deal values SFE shares at A$16.93 compared to a closing price on Wednesday of A$16.74.

Prior to the announcement of the merger SFE shares were trading around the A$14 mark.

Wednesday's victory hasn't come without a fight. Shareholders...

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