Natural Gas Exchange Inc. (NGX), a subsidiary of TSX Group Inc., has made an offer to the shareholders of Oxen Inc. (Oxen) to acquire 100% of the shares of Oxen, which owns the Alberta Watt Exchange (Watt-Ex). The principal shareholders of Oxen, who hold approximately 90% of the shares of the company, have agreed to tender their shares to the offer.
Watt-Ex provides services to support the Alberta electricity market by listing specialized contracts which allow the Alberta Electric System operator to procure ancillary electricity services from market participants.
Peter Krenkel, President of NGX, said, “With this transaction, we are supplementing our growing electricity business and acquiring a platform which allows for further growth in the energy markets.” He went on to say, “NGX has an opportunity to consolidate Watt-Ex’s operating reserves market with NGX’s forward contract trading. Combining Oxen and NGX will allow development of additional specialized energy products and will provide for concentration of liquidity for the benefit of all market participants.”
The offer will remain open until September 11, 2006 and is expected to be completed in mid-September.
