APX-ENDEX to Separate into Derivatives & Gas Spot Exchange and Power Spot Exchange

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APX-ENDEX to Separate into Derivatives & Gas Spot Exchange and Power Spot Exchange

September 17, 2012

AMSTERDAM/BRUSSELS/LONDON

Energy Exchange APX-ENDEX today announces the intention to rearrange the company’s current combined gas and power businesses into two separate entities: a power spot and clearing entity and a derivatives and gas spot entity. The successful synergetic growth of the APX-ENDEX markets in recent years enables a policy to create more focus in separate businesses. The intended split of APX-ENDEX is expected to create maximum strategic flexibility and improved opportunities for the development of each business, allowing the entities to focus and capitalise on their strong assets.

Together with the proposed separation of the companies, the ownership will also change. The power spot and clearing entity will be owned by TenneT Holding B.V. as majority shareholder and Elia System Operator N.V. The derivatives and gas spot entity will be owned by IntercontinentalExchange Inc. (ICE) as a majority shareholder and N.V. Nederlandse Gasunie. Fluxys Europe B.V. will not be a shareholder in either of the two new entities.

Alongside the further development of its UK, Dutch and Belgian spot power markets, the power spot and clearing entity aims to drive market innovation further and to create new opportunities by working closely with TSOs and other power exchanges. It will continue its focus on delivering the integrated electricity market through its involvement in numerous projects such as the North West European price coupling, flow-based market coupling and the establishment of an integrated European intraday market. The power spot and clearing entity will also remain the clearing house to all power and gas spot trades on both businesses. This further strengthens the current efficient, low cost cross-commodity spot market clearing solution to the benefit of all market participants.

The derivatives and gas spot entity intends to provide a highly liquid and efficient continental European hub for trading gas and power derivatives, as well as integrated gas within-day balancing markets and gas storage markets. As the balancing market operator of the UK OCM and Dutch TTF market, the derivatives and gas spot entity will also continue to extend this expertise to other markets, starting with the launch of the Belgian spot and balancing ZTP market end of September 2012.

Bert den Ouden, CEO of APX-ENDEX, says: “Building on the double-digit growth of our markets in the recent years, this intended strategic move will provide significant opportunities for continued growth in both the power and gas and derivatives businesses. With the increased strategic flexibility and focus that is the result of the intended demerger; they can remain market leaders for years to come. The envisaged new entities shall have the same ‘DNA’ as APX-ENDEX today, driven by the dedication to develop markets and bring the best trading and clearing solutions for all market participants, keeping in mind the interest of all stakeholders.”

The intended rearrangement of APX-ENDEX into separate entities and ICE becoming a majority shareholder in the derivatives and gas spot entity is subject to regulatory approvals and is expected to be finalised around year end.

Additional information on the transactions will be communicated in due time.

ING Corporate Finance and Freshfields Bruckhaus Deringer advised APX-ENDEX on the transaction.

Source: www.apxendex.com

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