TORONTO, ONTARIO--(Marketwire - Oct. 17, 2012) -
NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Urbana Corporation ("Urbana") (URB.TO)(URB.A) is very pleased with the announcement that the Chicago Mercantile Exchange ("CME") intends to purchase the Kansas City Board of Trade ("KCBOT").
Urbana owns 11 KCBOT seats worth approximately $5.2 million, prior to the announcement. Should the CME's purchase of the KCBOT be successful, Urbana expects to receive approximately $7.5 million in cash. It is Urbana's intention to tender its KCBOT seats to the CME offer.
CME Group to Acquire Kansas City Board of Trade
CHICAGO and KANSAS CITY, October 17, 2012 - CME Group, the world's leading and most diverse derivatives marketplace, and the Kansas City Board of Trade, the leading futures market for hard red winter (HRW) wheat, today announced they have signed a definitive agreement under which CME Group will acquire the Kansas City Board of Trade (KCBT).
Under the terms of the transaction, CME Group will pay $126M in cash for KCBT. In addition, KCBT will make a special distribution of excess cash to members concurrent with closing.
CME Group has committed to maintain a committee made up of KCBT market participants to advise on HRW wheat contract terms and conditions for at least three years, and to maintain the historic KCBT trading floor in Kansas City for a period of at least six months.
Thomas S. Caldwell, C.M. President