TMX Group board backs Maple takeover bid

TMX Group board backs Maple takeover bid

The board of TMX Group has finally recommended that shareholders accept a C$3.8 billion takeover offer from a consortium of Canadian banks and pension funds.

TMX Group's directors have unanimously backed the C$50 a share offer from the group of 13 partners collectively known as Maple.

The takeover offer has now been extended until January with Maple agreeing to a $39 million termination fee if the deal fails to materialise.

The agreement looks like bringing to a close a protracted battle for Canada's exchange operator. It initially agreed a merger with the London Stock Exchange in February and rebuffed Maple's later overtures.

However, in June the LSE deal fell through when it failed to get enough shareholders on side, paving the way for talks with Maple in July.

Having finally secured the TMX board's backing, Maple says it is confident of now getting regulatory approval by early next year.

Tom Kloet, CEO, TMX Group, says: "This is a unique opportunity to create an integrated exchange and clearing group that can provide efficiencies and new capabilities for the benefit of all market participants."

Speaking on behalf of Maple's investors, Luc Bertrand adds: "The combined company will be well-positioned to pursue growth opportunities through innovative new products and services, expanded distribution and international acquisitions or joint ventures."

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