Climate Exchange, the UK listed carbon emissions exchange operator, has agreed a £395m takeover from US group Intercontinental Exchange (ICE).
Shareholders will receive 750p a share in cash, and ICE plans to combine the UK company's emissions markets with its own futures and energy markets. Climate Exchange's shares have jumped 261.5p to 739.5p, albeit below the offer price. With 53.5% acceptances already - including ICE's 4.8% stake which it bought last June - there is little prospect of a counter bid to scupper the deal.
Analyst Andrew Shepherd-Barron at KBC Peel Hunt said there was no real alternative for shareholders but to accept the offer. He said:
ICE has timed its deal cleverly. Carbon trading volumes in Europe have hit a new monthly high on carbon prices at last on the move. Sentiment over the US introducing cap-and-trade had just been hit. The offer is close to our fair value without a bid premium. A counter-bidder could have paid more but has been squeezed out.
ICE entered into Climate Exchange equity through a 22 June 2009 acquisition of a 4.8% stake at 644p per share. It has long been obvious that [the company] would fit attractively into ICE's portfolio.
