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Singapore – Exchange Acquires 49% Stake In Energy Market Company.

29 September, 2012

 

Legal News & Analysis – Asia Pacific – Singapore – Corporate/M&A

  

On 6 August 2012, Singapore Exchange (SGX) announced that it had acquired 49% of Singapore-based Energy Market Company (EMC).
 
EMC is the operator of the National Electricity Market of Singapore (NEMS), the local market for wholesale electricity trading and the first such liberalised market in Asia. Wholesale electricity in Singapore is bought and sold through the NEMS.
 
The acquisition marks SGX’s entry into the electricity sector, expanding its current portfolio of energy products and OTC clearing services. SGX will also be wellplaced to pioneer electricity and related derivatives.
 
EMC will continue to run independently with its own board and management.SGX is acquiring this 49% from M-Co (The MarketPlace Company) Pte Limited, for a consideration of S$17.64 million and a deferred consideration of up to S$2 million over three years, subject to certain conditions being met. The acquisition is expected to have a marginal positive impact on SGX’s net tangible assets and earnings per share for the financial year ending 30 June 2013.
  
 
For further information, please contact:
 

Marcus Chow, Partner, ATMD Bird & Bird

marcus.chow@twobirds.com

 

ATMD Bird & Bird Corporate/M&A Profile in Singapore

 

 

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