Shoosmiths' key role in cross-border sale to Deutsche Borse

Shoosmiths' key role in cross-border sale to Deutsche Borse


Author: Graeme Smillie

Shoosmiths corporate specialists have played a leading role in a cross-border deal stretching from Europe to the Far East.

The national law firm advised Singapore-based Freight Investor Services Pte Ltd (FIH) on the strategic sale, for an undisclosed double digit million USD consideration, of a majority shareholding in Cleartrade Exchange Pte Ltd (CLTX) to European Energy Exchange AG (EEX), the leading energy exchange in Europe which is part of the Deutsche Börse Group.

Partner Ben Turner and associate Gareth Davies led Shoosmiths' transaction team.

Turner said: "We were delighted to advise FIH on the achievement of its strategic ambitions for CLTX.

CLTX is an exciting and potentially disruptive platform that provides the world's first end-to-end processing system for over-the-counter (OTC) cleared commodity derivatives. EEX provides an excellent partner for FIH to help CLTX deliver on its objectives while allowing EEX to expand its product and service offering to new markets and products."

FIH shareholder, John Banaszkiewicz said: "Ben and the team at Shoosmiths have a proven track record in advising overseas companies on complex, cross-border deals. Our team has worked closely with them for some time and, as always, their technical expertise and commercial approach proved invaluable in reaching a successful outcome for us; we have a high degree of trust in their ability to deliver time and again."

Turner added: "The deal itself was a complex one, which stretched across a number of jurisdictions. It was also set within a very challenging timescale. Our ability to co-ordinate teams of overseas lawyers and proactively manage their outputs meant we were well positioned to advise FIH on this transaction and achieve the best result for our client."

CLTX is a regulated futures market, providing an electronic global marketplace for commodity futures and OTC cleared derivatives. It is regulated by the Monetary Authority of Singapore (MAS) and provides traders, brokers and hedge funds with an electronic order book and block trade facility, trade processing, reporting and straight through processing to multiple clearing houses.

EEX is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances, coal and guarantees of origin are traded. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing AG.