Singapore, Aug 6, 2012 – (ACN Newswire) – Singapore Exchange (SGX) today said it has 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 well-placed to pioneer electricity and related derivatives.
EMC will continue to run independently with its own board and management.
“The stake in EMC affirms our commitment towards building a leading presence in the energy and commodities market. The demand for electricity and energy products will increase in line with Asia’s growth and this acquisition will position SGX to take advantage of these opportunities,” said Mr Magnus Bocker, CEO of SGX.
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, which was completed today, 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.
About Energy Market Company (EMC)
Energy Market Company (EMC) is the wholesale market operator of the National Electricity Market of Singapore (NEMS). EMC was established in 2001 as a joint venture between the Energy Market Authority (EMA), a statutory board under the Singapore Ministry of Trade and Industry, and The Marketplace Company Pte Ltd (M-co). EMC provides a transparent and competitive platform for the trading of electricity in Singapore. Its key activities include calculating prices, scheduling generation, clearing and settling market transactions as well as supporting governance of the market. For more information on EMC, please visit www.emcsg.com.
AboutSingapore Exchange (SGX)
Singapore Exchange (SGX) is the Asian Gateway, connecting investors in search of Asian growth to corporate issuers in search of global capital. SGX represents the premier access point for managing Asian capital and investment exposure, and is Asia’s most internationalised exchange with more than 40% of companies listed on SGX originating outside of Singapore. SGX offers its clients the world’s biggest offshore market for Asian equity futures market, centred on Asia’s three largest economies – China, India and Japan.
In addition to offering a fully integrated value chain from trading and clearing, to settlement and depository services, SGX is also Asia’s pioneering central clearinghouse. Headquartered in Asia’s most globalised city, and centred within the AAA strength and stability of Singapore’s island nation, SGX is a peerless Asian counterparty for the clearing of financial and commodity products. For more information, please visit www.sgx.com.
Carolyn Lim Communications Tel: +65 6236 8139 Email: [email protected] Joan Lew Communications Tel: +65 6236 8658 Email: [email protected]