SINGAPORE LAW AND PRACTICE Contributed by: Jeffrey Lim, Daniel Lim, Frederick Tay, Genevi Lim, Lakshmanan Anbarazan, Sarah Lai, Stephanie Goh and Tobias Andreas Satria, Joyce A. Tan & Partners LLC
• Except with the prior written approval of the PUB, a person must not become, on or after 1 April 2020, a 12% controller or 30% controller of a designated entity. • A person must not acquire, on or after 1 April 2020, as a going concern the business or undertaking, or any part of the business or undertaking, of a designated entity which relates to the Designated Activities unless the person, and the designated entity have obtained the prior written approval of the PUB. In determining whether to grant approval, the PUB will consider whether: • the person acquiring the business or undertaking is a fit and proper person; • the acquisition will affect the security and reliability of the supply of water in Singapore; and • it is in the public interest to do so. Supply of Electricity The shareholding requirements are regulated under the Electricity Act 2001 of Singapore (EAS), which provides the following thresholds in relation to any designated entity that is a transmission licensee or a transmission agent licensee (“Designated Electric - ity Licensee”) or that owns a transmission system or part of a transmission system of which the Authority is satisfied will engage in or is engaging in an activity that is critical to Singapore’s energy security and reli - ability (“Designated Entity”): • A Designated Electricity Licensee or Designated Entity must give notice in writing to the Energy Market Authority (EMA) if any person acquires equity interest in the licensee, the entity or the business trust, respectively, whether through a series of transactions over a period of time or otherwise, that would result in that person holding 5% or more but less than 12% of the total equity interest in the Designated Electricity Licensee or Designated Entity. • No person may, whether through a series of trans - actions over a period of time or otherwise, become a 12% controller, a 25% controller, a 30% control - ler, a 50% controller, a 75% controller or an indirect controller of a Designated Electricity Licensee or a
Designated Entity without obtaining the prior writ - ten approval of the EMA. • No person may acquire as a going concern the designated businesses or part thereof conducted by the Designated Electricity Licensee or Designat - ed Entity unless the person, and the licensee or the entity (as the case may be) obtain the prior written approval of the Authority. In determining whether to grant approval, the EMA will consider whether: • the person acquiring the business is a fit and proper person; • the acquisition will affect the security and reliability of the supply of electricity to the public and the designated business activities will continue to be conducted prudently and in compliance with the provisions of the EAS; and • it is in the public interest to do so. Supply of Gas The shareholding requirements are regulated under the Gas Act 2001 of Singapore (GAS), which provides the following thresholds in relation to any designated entity that is a gas transporter, a gas transport agent or an LNG terminal operator (“Designated Gas Licen - see”) or that owns a gas pipeline network (or any part of a gas pipeline network) or which the Authority is satisfied will engage in or is engaging in an activity that is critical to Singapore’s energy security and reli - ability (“Designated Entity”): • The Designated Gas Licensee or Designated Entity must give notice in writing to the EMA if any person acquires equity interest in the licensee or the entity respectively, whether through a series of transac - tions over a period of time or otherwise, that would result in that person holding 5% or more but less than 12% of the total equity interest in the licensee or the entity. • No person may, whether through a series of transactions over a period of time or otherwise, become a 12% controller, a 25% controller, a 30% controller, a 50% controller, a 75% controller or an indirect controller of a Designated Gas Licensee or a Designated Entity without obtaining the prior written approval of the EMA.
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