General Announcement::SGX completes acquisition of Energy Market Company
Issuer & Securities
Stapled SecurityNo
Announcement Details
Announcement Title General Announcement
Date & Time of Broadcast01-Oct-2014 17:37:33
Announcement Sub TitleSGX completes acquisition of Energy Market Company
Announcement ReferenceSG141001OTHR4PP7
Submitted By (Co./ Ind. Name)Carolyn Lim
DesignationVP, Marketing & Comms
Description (Please provide a detailed description of the event in the box below)Singapore Exchange (SGX) today acquired the remaining 51% of Singapore-based Energy Market Company (EMC) from the Energy Market Authority (EMA), making EMC a wholly-owned subsidiary of SGX.

This acquisition will allow EMC to leverage SGX s expertise and operational synergies to provide better services to market participants at more competitive rates. For a start, wholesale electricity market participants will benefit from two percent savings in market fees over the next three years.

It will also enable SGX, a leading operator of securities, commodities and derivatives markets, to integrate development with EMC s platform for an electricity futures market and related power and gas products for Singapore.

Asia s continued growth and rising consumption translate to strong power and gas demand. SGX is already a hub for the trading and risk management of commodities and financial derivatives. Together with EMC, we intend to become Asia s price discovery centre for power and gas, said Magnus Bocker, CEO of SGX.

SGX is acquiring 51% of EMC for a cash consideration of $23 million. The change in EMC s shareholding will have no impact on its operation of the wholesale electricity market. The acquisition is not expected to have any material impact on SGX s net tangible assets and earnings for the financial year ending 30 June 2015. EMC will continue to be regulated by EMA. SGX had in August 2012 bought 49% of EMC, the operator of the National Electricity Market of Singapore (NEMS). NEMS is the first liberalised market in Asia for wholesale buying and selling of electricity.