SGX, ASX revamp merger proposal

SGX and ASX made changes to their merger proposals in a bid to boost the deal's chances of getting regulatory approval in Australia.

Under the revised proposal, there will be an equal number of Australian and Singaporean directors on the board of the firm formed after the merger. The 13-member board will comprise five Australian citizens, five Singaporeans and three international directors, SGX and ASX said in a joint statement.

The new proposal also makes it clear that current ASG Chairman David Gonski will be deputy chairman of the SGX-ASX firm while current SGX chairman Chew Choon Seng will be chairman of the new firm. Gonski will also chair the integration committee charged with overseeing a successful integration, in an obvious attempt to strike a balance.

SGX will also commit to ensuring ASX and all of its licensed subsidiaries maintain boards with a majority of Australian citizens and an Australian chair.

In addition, all physical assets required for the operation of the ASX group businesses will continue to be developed and located in Australia.

The Australian business will also be run by a chief executive based in Australia so as to provide easy access to customers and stakeholders.

The existing regulatory protections will continue to be in place after the completion of the merger deal.


The two companies said the changes to the proposal came after talks with a wide range of stakeholders.