Maple Extends TMX Takeover Offer to Feb. 29 to Get Approvals

Maple Group Acquisition Corp., comprised of 13 Canadian financial-services firms, extended its C$3.73 billion ($3.73 billion) offer for TMX Group Inc. (X) to Feb. 29 while it pursues regulatory approvals to buy Canada’s main equities and derivatives markets.

“We are committed to the transaction and are working diligently to obtain the required regulatory approvals,” Maple spokesman Luc Bertrand said today in a statement. “To this end, we are in ongoing discussions with the regulators and have made numerous submissions to them.”

The takeover by Maple, whose 13 members include Toronto- Dominion Bank, Ontario Teachers’ Pension Plan and Manulife Financial Corp. (MFC), requires approval from provincial regulators and Canada’s Competition Bureau.

The Competition Bureau said Nov. 29 that it had “serious concerns” about the plan in connection with equities trading and clearing settlement.

Maple intends to buy 100 percent of TMX and integrate it with Canada’s securities clearinghouse and Alpha Group, a bank- owned alternative trading venue that competes with TMX.

Maple said today it “recently” submitted a pricing model for Canadian Depository for Securities Ltd. clearing house and proposed remedies to address concerns on equities trading.

An Oct. 30 agreement between Maple and TMX says that if conditions aren’t satisfied by the offer expiry date, “Maple shall be required to extend the expiry time.” The tender offer to buy at least 70 percent of TMX shares can be extended up to April 30, according to the agreement.

Maple has extended its offer four times since proposing to buy the Toronto Stock Exchange owner in May.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; David Scanlan at dscanlan@bloomberg.net

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