Maple bid for TMX wins shareholder approval
By Euan Rocha
TORONTO (Reuters) - The takeover of Canadian stock market operator TMX Group (X.TO: Quote) by a group of financial institutions has been approved by TMX's shareholders, bringing all of Canada's main securities exchanges under a single umbrella.
The approval of the C$3.8 billion ($3.8 billion) bid creates a new entity that combines the Toronto Stock Exchange with its main rival, Alpha. It also folds in the Canadian Depository for Securities, which clears and settles all stock trades in Canada.
Maple Group's C$50-a-share offer secured final regulatory approvals just weeks ago, paving the way for the final go-ahead. Over 90 percent of TMX's shares were tendered by shareholders in support of the deal, the companies said late on Tuesday.
"TMX Group is pleased with today's outcome," said TMX Chief Executive Tom Kloet, who will remain CEO of the combined entity.
TMX agreed to back Maple's bid last October, after initially rejecting an unsolicited offer that the banks and their partners put together to scupper a friendly deal that was struck earlier with the London Stock Exchange (LSE.L: Quote).
Maple touted its proposal as the best way to keep Canadian exchanges out of foreign hands, having unveiled the deal amid a wave of foreign firms launching bids for global rivals in the exchanges sector.
The group, a consortium that includes some of Canada's top banks, pension funds and insurers, said the level of shareholder support well exceeded the minimum 70 percent approval needed for the takeover to proceed.
Maple and TMX in a joint statement said the acquisitions of CDS and Alpha would close on Wednesday. Continued...