General Atlantic will invest $135 Million Equity Investment in NYMEX
NYMEX Holdings, Inc. and General Atlantic LLC announced a few weeks ago that they have signed a definitive agreement by which General Atlantic will invest $135 million for a 10% equity stake in NYMEX. Following the completion of the transaction, General Atlantic will not own any trading rights, which will remain with NYMEX members. The definitive agreement follows the letter of intent announced by NYMEX on September 20, 2005.
NYMEX expects to file preliminary proxy materials with the Securities and Exchange Commission (SEC) shortly and hold a shareholder meeting in early 2006 to approve the investment by General Atlantic. Upon completion of the transaction, which is subject to shareholder approval, General Atlantic will help NYMEX prepare for a potential initial public offering (IPO), which is expected to take place in 2006. A public offering of NYMEX common stock would extend NYMEX�s leadership position and its ability to pursue a full range of strategic growth opportunities.
�We are very excited to have reached a definitive agreement with General Atlantic,� said Mitchell Steinhause, Chairman of NYMEX. �General Atlantic�s minority investment is the best path forward for NYMEX and all of its constituents. We expect this partnership to help us solidify our market-leading position and continue our ongoing transformation by improving our corporate structure, technology and governance policies. General Atlantic�s extensive public company experience will enhance NYMEX.�
�We look forward to working with the Board and management team of NYMEX as the Exchange continues to strengthen its position as the leading liquidity center for the global energy commodity futures marketplace,� said Bill Ford, President of General Atlantic, who will join the NYMEX Board of Directors upon completion of the transaction. �Led by open outcry trading, NYMEX is well positioned to extend its strong franchise with new products and further international initiatives.�