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SGX buys rest of EMC for S$23m
SINGAPORE Exchange (SGX) has acquired the rest of electricity market operator Energy Market Co (EMC) for S$23 million in cash as it marches toward its goal of creating electricity and energy futures.
SGX acquired the remaining 51 per cent of EMC from the Energy Market Authority of Singapore, two years after buying an initial 49 per cent stake for S$17.6 million plus a conditional S$2 million.
The deal is not expected to have any material impact on SGX's net tangible assets and earnings for the year ending June 2015.
Its chief executive Magnus Bocker said in a statement: "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."
Shares of SGX, which runs and regulates Singapore's stock and derivatives exchanges, closed at S$7.03 on Wednesday, down by 2.8 per cent or 20 Singapore cents, before the deal was announced.