Tokyo bourse says fears ASX deal to dilute SGX stake

TOKYO (BestGrowthStock) – The Tokyo Stock Exchange said it is worried the Singapore Exchange’s (SGXL.SI: ) agreed $7.9 billion takeover of Australia’s ASX Ltd (ASX.AX: ) will dilute its 5 percent holding in the Singapore bourse and has not yet decided whether to support the deal.

Speaking at a regular news briefing on Tuesday, TSE Chief Executive Atsushi Saito complained that his exchange had not been informed before the deal was announced.

“To be frank, it is irritating,” he said, although he added that the deal would spur discussion about the future of stock markets in the region.

TSE spokesman Kazuhiko Yoshimatsu said on Wednesday that SGX officials had yet to discuss the matter with the Tokyo exchange and had given no information to TSE on when it plans to hold a shareholders’ meeting to vote on the deal.

Opposition from the TSE, which holds a 5 percent stake in SGX, might convince other shareholders to scupper the proposed deal to create Asia’s fourth-largest stock market. It could also bolster those in Australia’s parliament who oppose the agreement.

Australia’s Green Party, with an influential bloc in the upper house senate, expressed concern about the merger on Tuesday, while the main opposition conservative group raised questions about the damage it might do to efforts to make the country a major regional financial center.

(Reporting by Tim Kelly; Editing by Edmund Klamann)

Tokyo bourse says fears ASX deal to dilute SGX stake