HK bourses set merger terms

This compares with a rating of 20 Times for all listed Hong Kong companies at the end of June. The merger proposal showed that at current prices the Australian Stock Exchange traded at a price/earnings multiple of 43.69 Times its latest audited earnings and Swedish equities exchange OM Gruppen at 20.87 Times.

The pro-forma combined net assets of the two exchanges that will form Hong Kong Exchanges and Clearing Ltd HKEC were HK4.15 billion at the end of June or HK3.89 per share.

The Stock Exchange ofHong Kong posted after-tax earnings of HK251.8 million in the year to June and of HK388.94 million in 1998 after taking an exceptional loss of HK150.00 million.