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

In the beginning, the Wellington-based company would 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. 

It has been learnt that if performance exceeds targets, then NZX would get 50% of profits through the next 2 ½ years and a significant earn-up.
 
A statement posted on Markit’s website says that TZ1 is being renamed Markit Environmental Registry. A string of profitable transactions for NZX, which reaped gains from the sale of Bond Exchange of South Africa to the Johannesburg Stock Exchange, is marked by the sale. 

Since NZX targets what its Chief Executive sees as a growth opportunity in the primary sector, it has diversified into agricultural data and plans to launch dairy product futures.

TZ1, which has over 38 million tonnes of registered voluntary emission reductions, holds more than 350 customers. 
 
Lance Uggla, chief executive of Markit, said in the statement, “The acquisition of TZ1 Registry will give Markit a strong foothold in the fast-growing carbon markets and broader global environmental markets.”

Markit said, citing World Bank figures, that the global market for carbon emissions grew to US$126 billion last year, from US$63 billion in 2007.  
 
It concluded, “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.”