Japan Exchange to sell its 4.95% stake in SGX over three years

The SGX Centre at Shenton Way. Credit: DEALSTREETASIA

Japan Exchange Group (JPX), the operator of the Tokyo Stock Exchange has announced that it will sell its entire 4.95% stake in Singapore Exchange (SGX) progressively over a period of about three years.

The decision to divest its shares in SGX, believed to be worth about 32 billion yen ($301 million), is JPX response to a government Corporate Governance Code which discourages listed companies from holding shares for purposes other than pure investment.

The Code, introduced in 2015, requires companies to examine and explain the economic rationale and future outlook of any strategic holdings.
“Following a review of the requirements under the Code, JPX reached the conclusion that the existing cooperative relationship with SGX would continue even without holding the shares of SGX,” the statement said.

The company noted that it acquired the shares of SGX in June 2007 with the aim of constructing a cooperative relationship with SGX while taking into consideration the various alliances among exchanges abroad at that time.

The two companies later further enhanced their cooperation through entering into the letter of intent for mutual cooperation in 2014, to jointly promote measures that contribute to the increase in mutual corporate values.

The stake of SGX was initially acquired by Tokyo Exchange Inc. in 2007 for a reported 37.4 billion yen. Later in 2013, following a drop and rebound of the shares, Tokyo Stock Exchange merged with Osaka Securities Exchange in 2013 to form Japan Exchange Group.

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.