Montréal shareholders approve TSX merger

Source: Montréal Exchange Inc.

Montréal Exchange Inc. (MX) (TSX: MXX - News) announced that during the special general meeting that was held today, MX shareholders approved the proposed combination with TSX Group Inc. to create TMX Group Inc.

The combination had to be approved by at least 66 2/3% of the votes cast by MX shareholders present in person or represented by proxy at the meeting. The shareholders approved it by 99.6%.

This is a key step towards the completion of the combination and the creation of the new TMX Group. It demonstrates a strong show of support for the transaction by MX shareholders.

On January 31st, 2008, MX filed an application with the Autorité des marchés financiers (AMF), to amend its recognition order. This application included written undertakings from TSX Group Inc. to the effect that, notably:
  • MX will continue to be the Canadian national exchange for all derivatives trading and related products;
  • The head office and the executive office of each of MX and the Canadian Derivatives Clearing Corporation (CDCC) will remain in Montréal;
  • MX operations will remain and continue to develop in Montréal;
  • The AMF will continue as the lead regulator in respect of the operations of MX and CDCC, with oversight over the future development of derivatives markets in Montréal;
  • Any proposal for a change in the control of more than 10% of the shares of MX will be subject to the prior approval of the AMF;
  • TMX Group will remain subject to a 10% ownership restriction, and any amendments to this restriction will require the prior approval of each of the AMF and the Ontario Securities Commission.

Since February 1st and until March 3, 2008, any person who submits written comments within the public consultation process of the AMF, will be, depending on availability, provided with an opportunity to express their opinion at the public hearings to be held March 26 and 27, 2008.

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