JSM Financial: The proposed merger between Leaf Clean Energy and Trading Emissions is off!

Feb. 23, 2010 - PRLog -- JSM Financial sources have disclosed that the much anticipated merger between Trading Emissions PLC and Leaf Clean energy is officially off after the companies failed to secure sufficient shareholder support.

The proposed reverse takeover was originally announced in December last year, but was subject to shareholder approval, with the firms requiring 75% of their equity to approve the deal. At the recent shareholder meeting the companies were only able to secure 62%.

According to a statement available to JSM Financial, the shortfall was apparently the result of a single major shareholder withdrawing its support for the merger.

"While a merger with Leaf Clean Energy Company presented an opportunity to quickly enter North America, the company is still committed to pursuing this market and will now target investments in the US as well as Europe and Asia to build a truly global carbon focused business,"  the Trading Emissions statement said.

There had been wide speculation that both Scottish Widows Investment Partnership and Moor Capital Investment, who together own over 25% of Trading Emissions Plc were likely to oppose the merger, but recent reports indicate that Moore Capital, controlling 32% of each company’s equity did in fact withdraw support after previously endorsing the deal.

"The board of Leaf Clean is confident of the company's ability to continue to execute its strategy on an independent basis," JSM Financial believes Leaf Clean Energy said in a statement. "Leaf Clean has a well diversified portfolio of 11 investments across a range of clean energy sectors including biomass, waste-to-energy, solar and wind with a balance between technology and project related investments. The company has made an aggregate investment of $200m. Including funds committed to develop the existing portfolio, the company is now substantially invested."

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