Taylor Wessing advises Climate Exchange PLC on its acquisition of Chicago Climate Exchange, Inc and on the subscription for shares by Goldman Sachs

28-Sep-2006  |  Corporate

Taylor Wessing advised Climate Exchange plc ("CLE") on its acquisition of the 60% of issued shares in Chicago Climate Exchange Inc. ("CCX") which CLE did not already own. The initial consideration for the acquisition amounts to £29m with additional deferred consideration of up to £12m if certain pre-defined performance criteria are met over the next three financial years.  The initial consideration was satisfied by the payment of approximately £6.2m and the issuance of approximately 6.9m CLE shares.

As CCX owns the 51% of the European Climate Exchange ("ECX") not already owned by CLE, as a result of the acquisition ECX will also be wholly owned by CLE.

In addition, Taylor Wessing advised CLE on the subscription by Goldman Sachs for approximately 4.1m CLE shares, representing 10.1 per cent of the enlarged issued share capital of CLE. The aggregate subscription price was £12.2m.

Both transactions completed on 27 September 2008.

Taylor Wessing has represented CLE since its formation, including advising CLE on admission of its shares to trading on AIM in September 2003, a further placing in October 2004 and its investments in CCX and ECX.

The team from Taylor Wessing comprised Simon Walker, Alex Thomas, David Ponsford and Mark Tan.

Taylor Wessing partner, Simon Walker comments: "We are delighted to have advised Climate Exchange plc on this transaction which brings the Chicago Climate Exchange and the European Climate Exchange under common ownership."

The nominated advisor to CLE is Cenkos Securities Limited and McGuire Woods advised CLE in respect of US legal issues.

Notes to editors

For more information please contact Taylor Wessing's Media Relations on 020 7300 4930 / 4925 or email s.lee@taylorwessing.com

Taylor Wessing has a long history of advising in the energy sector both in Europe and beyond. Our energy practice brings together lawyers in the fields of project development and finance.  Our experience in ground-breaking projects in the renewable energy  and emissions trading sectors is second to none. A selection of our key work in this area is set out below and further details can be obtained by visiting our website www.taylorwessing.com.

  • In January 2006, Taylor Wessing advised carbon emissions group ICECAP on the first closing of its carbon portfolio having raised aggregate commitments of 15 million tonnes. 
  • In April 2005, Taylor Wessing advised Trading Emissions plc on its admission to AIM raising £135mTaylor Wessing also advised Trading Emissions plc on the admission of its C shares to trading on AIM in April 2006, raising a further £175m.
  • In December 2004, Taylor Wessing advised Climate Exchange Plc on investments in greenhouse gas emissions trading schemes withCCX a company which is believed to have established the first ever multi-sector voluntary carbon credit trading exchange; and on the establishment of European Climate Exchange Limited, a company which has created the European Climate Exchange, beingthe first carbon dioxide emissions trading exchange in Europe.
  • In February 2004, Taylor Wessing advised ICECAP Limited on the development of an innovative product for hedging against carbon emissions liabilities under the new EU Emissions Trading Scheme (EU ETS) and other similar schemes deriving from the Kyoto Protocol. 

Taylor Wessingis a leading law firm providing legal support for commercial organisations doing business in Europe. Based in Belgium, France, Germany and the UK, Taylor Wessing provides the full range of legal services to major corporations and growing enterprises. Taylor Wessing boasts a strong reputation in the corporate, finance and real estate sectors alongside in-depth experience across the full range of legal services including intellectual property, tax, litigation & dispute resolution, employment & pensions and private client.   www.taylorwessing.com

Summary of Climate Exchange's history

  • March 2006 - CLE announces proposed acquisition of remaining 60% of CCX that it does not already own
  • December 2005 - CCX and the Montreal Exchange announce joint creation of the Montreal Climate Exchange
  • June 2005 - ECX and Powernext enter into a co-operation agreement to trade both the carbon dioxide emission futures and spot markets
  • December 2004 - Launch of trading on the Chicago Climate Futures Exchange. First contracts to be US sulphur dioxide
  • October 2004  - Fundraising of £15m announced, further investment in CCX and investment in ECX
  • April 2004 - CCX and ICE Futures announce a link for EU Emissions trading
  • December 2003 - Launch of trading on the Chicago Climate Exchange
  • September 2003 - Admission of CLE's shares to trading on AIM, fundraising of £15m and investment in CCX