WCE Holdings Inc. (Holdings), parent of Winnipeg Commodity Exchange Inc. (WCE), WCE Clearing Corporation (WCECC) and Canadian Climate Exchange Inc. (CCE) announced today that it has received an unsolicited written acquisition proposal from a third party to acquire the shares of Holdings for a purchase price of $77.59 per common share or $50 million Canadian in the aggregate.
WCE is currently party to an arrangement agreement with IntercontinentalExchange, Inc. (ICE) for ICE to acquire the shares of Holdings for a purchase price of $62.08 per common share or $40 million Canadian in the aggregate.
The board of directors of Holdings has determined, after consultation with its legal and financial advisors, that the third party proposal is reasonably likely to result in a superior proposal and has authorized management to negotiate the third party proposal. Holdings is permitted under its arrangement agreement with ICE to accept a superior proposal if ICE fails to match same and Holdings pays ICE a termination fee of $1.2 million.
There can be no assurances that an agreement will be reached with the third party and Holdings does not intend to disclose further developments with respect to negotiations with that party until a definitive agreement is reached or negotiations are terminated.
Winnipeg Commodity Exchange Inc., established in 1887, has been facilitating futures contract trading since 1904. WCE is Canada's only agricultural futures and options exchange and North America's first fully electronic commodity exchange. WCE offers futures and options contracts on canola, domestic feed wheat, and western barley.
