NZX completes sale of TZ1 Registry to Markit

Wednesday 1st July 2009

NZX, the New Zealand stock exchange operator which is diversifying into new markets and data services, completed the sale of its TZ1 Registry business to ﬁnancial services company Markit for US$37.1 million.

The Wellington-based company will initially receive shares in Markit through until 2011, at which time the value of the deal will be subject to change by plus or minus US$17 million, depending on the underlying performance of the business. NZX is to receive 50% of profits through the next two and a half years and a potential earn-up if performance exceeds targets, the company said today.

TZ1 is being renamed Markit Environmental Registry, according to a statement on Markit’s website. The sale marks a string of profitable transactions for NZX, which reaped gains from the sale of Bond Exchange of South Africa to the Johannesburg Stock Exchange.

NZX has diversified into agricultural data and plans to launch dairy product futures as it targets what chief executive sees as a growth opportunity in the primary sector. TZ1 has more than 350 customers and over 38 million tonnes of registered voluntary emission reductions.

“The acquisition of TZ1 Registry will give Markit a strong foothold in the fast-growing carbon markets and broader global environmental markets,” Lance Uggla, chief executive of Markit, said in the statement.

The global market for carbon emissions grew to US$126 billion last year, from US$63 billion in 2007, Markit said, citing World Bank figures.

Shares of NZX climbed 0.7% to $7.25 today and are up 48% this year, second only to brewer Lion Nathan, which has surged 50% as major shareholder Kirin prepares to takeover the company at a premium.

NZX’s final gain on the sale will be released with the company’s first-half results on August 7.The first-half results will reflect its ongoing economic interest in TZ1, its newly acquired energy market business M-co and various rural assets, it said.

Businesswire.co.nz

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