Source：Mysteel Nov 19, 2018 16:48

 PRESS RELEASE: Shanghai Ganglian and Singapore Exchange announce joint venture

 Shanghai Ganglian E-Commerce Holdings (SGEH), parent company of Mysteel Global, has signed an agreement to enter into a joint venture and shareholder's agreement with Singapore Exchange Limited (SGX) today, 19 November 2018.

The JV Agreement sets out the terms by which a joint venture company will be established with each party acquiring 50% of the issued ordinary share capital of the Joint Venture Company (each 50% to be referred to as Joint Venture Company Shares).  The Joint Venture Company Shares will be acquired by SGEH and Asian Gateway Investments Pte. Ltd. (AGI), a wholly owned subsidiary of SGX.

Through the Joint Venture Company, the parties wish to co-operate and create indices measuring the normalized prices of iron ore, steel and other ferrous metals. These indices will also be licensed for data distribution, research and analysis, and creation of derivative products. 

This partnership will leverage the strength of SGEH's indexing business and extensive data, together with SGX's ability in creating reliable and regulatory-compliant indices, to develop new indexation and product opportunities for both parties. 

The joint venture company will grant to Singapore Exchange Derivatives Trading Limited, an exclusive licence to create derivative products based on the JV Indices outside of China. 

Under the terms of the JV Agreement, the joint venture company will be established with an initial issued share capital of S$200,000 (“Issued Share Capital”), to be paid in cash by AGI and SGEH in equal proportion.  The Issued Share Capital was arrived at after taking into account the business operations and prospects of the joint venture, and the synergistic benefits that may be derived from the Proposed Transaction. 

Upon completion of the Proposed Transaction, both SGEH and AGI will hold 100,000 ordinary shares each, representing 50% of the issued share capital of the partnership.  Subject to the establishment of joint venture company and the company executing a Deed of Ratification and Accession, the Proposed Transaction is expected to be completed within 60 days of this Announcement.

The Board of Directors of this joint venture will comprise of 4 directors, with 2 directors each being nominated by SGX and SGEH respectively.

For more details about this Joint Venture, please contact:
Globalmarketing@mysteel.com