Alberta, Quebec, Ontario Pension Funds Sell TMX Group Shares

  • Three funds sell combined 10% stake in exchange operator
  • Pension funds to retain 5% stake after TMX shares rally

Three of Canada’s largest pension funds sold a combined 10 percent stake in TMX Group Ltd. for about C$312 million ($241 million), cutting by almost half their holdings in the operator of the Toronto Stock Exchange.

Alberta Investment Management Corp., on behalf of some of its clients, Caisse de Depot et Placement du Quebec and Ontario Teachers’ Pension Plan Board each agreed to sell 1.8 million common shares of TMX at C$57.70 a share through a group of banks led by Toronto-Dominion Bank’s TD Securities, according to a joint statement Monday.

The sale price represents a 4.1 percent decline from the Aug. 19 close, the biggest drop since Dec. 18. TMX shares have soared 61 percent this year.

The sale, executed after the market close in Toronto according to data compiled by Bloomberg, represents about 9.9 percent of the outstanding common shares of TMX as of Aug. 2. After concluding the sale, each of the three pension funds will hold about 5 percent of TMX, and will each have a nominee for the board of directors of the company.

E-mails to representatives with TMX Group were not immediately returned.

The three pension funds were among a group of investors made up of Canada’s largest lenders and financial services companies, including Toronto-Dominion, Canadian Imperial Bank of Commerce, Bank of Nova Scotia, Canada Pension Plan Investment Board and Manulife Financial Corp. The so-called Maple Group bought TMX in a C$3.73 billion deal in 2012 at C$50 per share to block a merger between the exchange operator and London Stock Exchange Group Plc.

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