The Singapore Exchange (SGX) and The Singapore Commodity Exchange (Sicom) have agreed in-principle to SGX acquiring at least 95 per cent of Sicom, through the subscription of shares, for a
The Singapore Exchange (SGX) and The Singapore Commodity Exchange (Sicom) have agreed in-principle to SGX acquiring at least 95 per cent of Sicom, through the subscription of shares, for a total investment of SD7.5m.
The proposed acquisition is subject to mutually-agreeable terms and regulatory approvals as well as the consent of Sicom’s shareholders. The acquisition is expected to be completed by end-June 2008.
Sicom’s chairman, Lim How Teck, is pleased to note that, ‘The in-principle agreement has included our desire to continue to encourage the active involvement from the rubber community, which is an essential ingredient to make any commodity trading successful.
‘SGX sees great value in the rubber community and its continued role in the trading of rubber in Singapore.’
Hsieh Fu Hua, chief executive of SGX, says, ‘Sicom is a well-known exchange in the international rubber business, with an established base of market participants. SGX has the systems and clearing capabilities, international membership and resources to enhance economies of scale and facilitate growth.
‘We welcome this opportunity to work with the Sicom community, to leverage on mutually-beneficial synergies to build an international commodity futures market.’
