Maple Group Extends Offer to Acquire TMX Group to May 31

A group of Canadian banks and pension funds extended its C$3.73 billion ($3.78 billion) offer to buy TMX Group Inc. (X) to May 31, its seventh extension as it pursues regulatory approval to buy the Toronto Stock Exchange owner.

Maple Group Acquisition Corp., whose 13 members include Toronto-Dominion Bank (TD), Caisse de Depot et Placement du Quebec and Manulife Financial Corp. (MFC), also renegotiated an agreement with TMX that extended the date to close the deal to July 31, the company said in a statement.

Maple agreed to buy bank-owned exchange operator Alpha Group for C$175 million and the Canadian Depository for Securities Ltd. clearinghouse for C$167.5 million, as part of its plan.

TMX shares rose 40 cents to C$45.10 at 4 p.m. trading in Toronto. The shares are about 9.8 percent below Maple’s C$50-a- share offer.

Maple has been seeking approvals from provincial regulators and Canada’s Competition Bureau to push ahead with its offer to buy TMX shares from investors. The Competition Bureau said April 27 its concerns on the deal may be “substantially mitigated” with rules from Ontario’s securities regulator governing operations of the combined company.

Maple, which first proposed to buy Toronto-based TMX in May, proposes to acquire between 70 percent and 80 percent of TMX shares in a tender offer. The group ultimately intends to buy 100 percent of TMX and integrate it with the CDS and Alpha, which competes TMX. Lazard Ltd. (LAZ) was the adviser to the Alpha and CDS transactions.

Competition Bureau

TMX shares had its biggest surge April 27 in 11 months after the statement from the Competition Bureau, which five months earlier said it had “serious concerns” about Maple’s plan in connection with equities trading and clearing settlement.

The Ontario Securities Commission will publish draft terms and conditions for a 30-day public comment period before making a final decision, Maple said. Quebec’s financial markets authority said March 15 that it intends to approve the proposed takeover. TMX also operates the Montreal-based derivatives market.

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

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

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