SGX divests index provider Scientific Beta
The deal enables ‘the redeployment of resources towards capabilities aligned with its growth priorities’, SGX says
[SINGAPORE] SGX Group has divested its wholly owned subsidiary, Scientific Beta, to global index provider STOXX for a consideration of about 23 million euros (US$26.2 million), the Singapore bourse operator announced on Wednesday (Jul 8).
The transaction is part of the group’s efforts towards active portfolio management and capital allocation, and enables “the redeployment of resources towards capabilities aligned with its growth priorities”, SGX said.
“As SGX sharpens its strategic focus, it is prioritising investments that strengthen its multi-asset franchise and long-term growth trajectory, particularly in areas that are integral to its securities, derivatives and data businesses,” it said.
Scientific Beta is a specialised research-based index provider focusing on multi-factor, single-factor and diversified equity strategies.
SGX Group acquired a majority stake in it in 2020, and completed its full acquisition in 2025.
SGX said the proceeds from the transaction will go towards general working capital purposes.
It said it would retain its global multi-asset iEdge platform. The exchange will continue to operate and build upon its existing index business as a part of its wider, multi-asset offerings.
Ng Yao Loong, SGX Group’s head of global financial markets, said shedding the unit would enable the exchange to focus on areas with the “strongest opportunities to deliver impact” for its clients, partners and shareholders.
The statement from SGX also said that Scientific Beta would be able to expand its global reach under its new owners.
The bourse operator noted that Scientific Beta had experienced “recent financial underperformance”. In H1 FY 2026, the net loss attributable to Scientific Beta, including a goodwill impairment loss, was about S$15 million.
On a pro forma basis for the financial year ended Jun 30, 2025, the transaction would lower SGX’s earnings per share (EPS) from S$0.606 to S$0.555. Adjusted EPS, which excludes certain non-cash and non-recurring items, would fall from S$0.57 to S$0.567.
Net profit would shrink from around S$648 million to S$593.7 million.
Shares of SGX Group ended at S$24.01 on Wednesday, S$0.16 or 0.7 per cent lower.
