CALGARY and TORONTO, Sept. 6 /CNW/ - TSX Group Inc. (TSX: TSX-X)
announced today it has entered into an agreement with Enbridge Inc. (TSX,
NYSE: ENB) and Circuit Technology Limited granting TSX Group the option to
acquire NetThruPut Inc. (NTP) at a time after March 15, 2009. Calgary-based
NTP, jointly owned by Enbridge and Circuit Technology, is the leading Canadian
electronic trading platform and clearing facility for crude oil.
"Canada is an emerging energy superpower and TSX Group is an important
facilitator of efficient markets. We are very excited about this transaction
as it complements both our NGX business and our strength in energy in our
existing equity markets," said Richard Nesbitt, CEO of TSX Group. "This
arrangement will allow us to further expand on our footprint in the energy
space in North America."
TSX Group has paid $9.5 million for the right to acquire NTP from its
shareholders Enbridge and Circuit Technology at a price between $40 million
and $95 million depending on NTP's 2008 net earnings. The purchase price
payable to Circuit Technology will be satisfied by the issuance of TSX Group
shares, subject to Toronto Stock Exchange regulatory approval. This agreement
also provides Enbridge and Circuit Technology with the right to sell NTP under
the same terms to TSX Group. Exercise of the option by either TSX Group or the
NTP shareholders is subject to certain closing conditions.
TSX Group is a leader in the oil and gas sector - more oil and gas
companies are listed on Toronto Stock Exchange and TSX Venture Exchange than
any other exchange group in the world. At the end of June 30, 2007, there were
434 oil & gas companies with a total market capitalization of $544.9 billion
listed on Toronto Stock Exchange and TSX Venture Exchange. Oil & gas companies
continue to raise equity on our exchanges with $5.6 billion raised in the
first half of 2007, and $10.5 billion raised in 2006. Over 10 billion
oil & gas shares, valued at $169.2 billion, traded on Toronto Stock Exchange
and TSX Venture Exchange in the first half of 2007. In the same period, more
than 5.6 million terajoules in natural gas cleared on NGX, which is a leading
North American energy exchange for the trading and clearing of energy
contracts. In March 2007, TSX Group announced that NGX had entered into a
technology and energy clearing alliance with the Intercontinental Exchange
NTP provides a secure internet-based crude oil trading and clearing
platform for customers to transact business anonymously in real-time with the
assurance of guaranteed commodity delivery and payment. These services are
augmented by timely access to current and historical market indicators.
NTP has created a liquid marketplace for buying and selling crude oil.
This is achieved through instant access to a wide market audience, creating
price transparency, and lower processing and administration costs. Since its
inception in January 1999, NTP has grown to be a central feature of the market
for a large majority of Canada's leading oil traders, including producers,
refiners, and marketers.
About NetThruPut Inc.
NTP is the Canadian leader in internet-based crude oil trading systems
and is an independently operated company, regulated by the Alberta Securities
Commission and the Commodities Futures Trading Commission. NTP is privately
held; owned 52% by Enbridge Inc. (whose major business is in crude oil
transportation) and 48% by Circuit Technology Limited (a private investment
company). NTP employs state-of-the-art technology to provide a secure platform
for transacting business anonymously in real-time with the assurances of
guaranteed commodity delivery and historical market indicators. NTP employs a
full clearing credit model. NTP currently sits on over 600 desktops spanning
almost 100 different companies.
About TSX Group Inc. (TSX-X)
TSX Group operates Canada's two national stock exchanges, Toronto Stock
Exchange serving the senior equity market and TSX Venture Exchange serving the
public venture equity market, Natural Gas Exchange (NGX), a leading North
American exchange for the trading and clearing of natural gas and electricity
contracts and Shorcan Brokers Limited, the country's first fixed income
inter-dealer broker. TSX Group also owns The Equicom Group Inc., a leading
provider of investor relations and related corporate communication services in
Canada. TSX Group is headquartered in Toronto and maintains offices in
Montreal, Winnipeg, Calgary and Vancouver.
About Enbridge Inc.
Enbridge Inc., a Canadian company, is a leader in energy transportation
and distribution in North America and internationally. As a transporter of
energy, Enbridge operates, in Canada and the United States, the world's
longest crude oil and liquids pipeline system. The Company also has
international operations and a growing involvement in the natural gas
transmission and midstream businesses. As a distributor of energy, Enbridge
owns and operates Canada's largest natural gas distribution company, and
provides distribution services in Ontario, Quebec, New Brunswick and New York
State. Enbridge employs approximately 5,000 people, primarily in Canada, the
United States and South America. Enbridge's common shares trade on the Toronto
Stock Exchange in Canada and on the New York Stock Exchange in the United
States under the symbol ENB. Information about Enbridge is available on the
Company's website at www.enbridge.com.
About Circuit Technology Limited
Circuit Technology Limited is a company incorporated in the British
Virgin Islands. It is a private investment company which holds 48% of the
issued shares of NetThruPut Inc.
Certain information provided in this news release constitutes
forward-looking statements. The words "anticipate", "expect", "project",
"estimate", "forecast" and similar expressions are intended to identify such
forward-looking statements. Although Enbridge believes that these statements
are based on information and assumptions which are current, reasonable and
complete, these statements are necessarily subject to a variety of risks and
uncertainties pertaining to operating performance, regulatory parameters,
weather, economic conditions and commodity prices. You can find a discussion
of those risks and uncertainties in our Canadian securities filings and
American SEC filings. While Enbridge makes these forward-looking statements in
good faith, should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
significantly from those expected. Except as may be required by applicable
securities laws, Enbridge assumes no obligation to publicly update or revise
any forward-looking statements made herein or otherwise, whether as a result
of new information, future events or otherwise.
For further information:
For further information: Steve Kee, Director, Corporate Communications,
TSX Group Inc., Toronto Office, (416) 947-4682, Toll Free 1-888-873-8392,
Cellular (416) 358-3714, Vancouver Office, (604) 602-6902, Calgary Office
(403) 218-2892, firstname.lastname@example.org; Gina Jordan, Enbridge Media Relations,
Office: (403) 508-3179.