Westcoast Energy Exchange Gets Boost

Vancouver-based Westcoast Energy Inc. (Westcoast), a leading North American energy company, and OM Gruppen AB, a Swedish public company which owns and operates various stock and derivatives exchanges in Europe, announced on February 10, 2000 that they have entered into a partnership arrangement that will further enhance and develop the Calgary-based Westcoast Energy Natural Gas Trading Exchange (NGX). The partnership, which will be OM Gruppen’s first investment in North America, involves the sale of 51 per cent of Westcoast’s wholly owned subsidiary NGX to OM, resulting in an after tax gain to Westcoast of $7 million. Westcoast will remain a partner in NGX and has the option to put the balance of its interest to OM Gruppen, subject to certain conditions being met. The deal is expected to close by March 31, 2000.

OM Gruppen have called on Douglas Black and Jay Hayden of Donahue & Partners’ Calgary office to complete the legal due diligence and to handle the acquisition. Other members of the Donahue legal team included Scott Negraiff (Calgary), Scott Fairley (Toronto), Barrie Webb (Toronto) and William Cortis (Toronto). In addition, Samuel Billard of Donahue’s Toronto office headed up the legal team in Toronto to complete a significant financing as part of the acquisition. A team from the Calgary office of Ernst & Young led by Barry Munro completed the financial due diligence for OM Gruppen. Westcoast Energy was advised by in-house counsel, Curt Bernardi, who called upon Allan Twa, Q.C., of Burnet, Duckworth & Palmer in Calgary to assist.