SGX And SICOM Agree In-Principle To SGX Acquiring Majority Stake In SICOM For S$7.5 Million

Singapore Exchange Limited (SGX) and Singapore Commodity Exchange Limited (SICOM) announced today that they have agreed in-principle to SGX acquiring at least 95% of SICOM, through the subscription of shares, for a total investment of S$7.5 million.

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, Mr Lim How Teck, is very pleased to note that “the in-principle agreement has incorporated our desire to continue to encourage 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.”

Mr Hsieh Fu Hua, CEO, SGX, said, “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.”