TMX Group is urging shareholders tender their shares to the Maple offer.
Maple Group Acquisition Corp.’s bid for TMX Group Inc. (TSX:T.X, Stock Forum) has acquired the final approval from the British Columbia Securities Commission after a 14-month pursuit.
Now that the deal can progress, the first part of the two-step process of Maple’s 3.6 billion bid to acquire 100% of the TMX Group shares will involve an initial offer for a minimum of 70% and a maximum of 80% of the outstanding TMX Group Shares.
Currently, TMX Group is urging shareholders tender their shares to the Maple offer. Once the 70% threshold has been passed Maple expects to be in a position to take up TMX Group shares on July 31.
Upon approval from the shareholders, the second step involves a share exchange transaction pursuant to a court-approved plan of arrangement under which the remaining TMX Group shares will be exchanged for common shares of Maple.
Maple expects to complete the proposed acquisitions of Alpha and CDS on August 1, 2012.
If the conditions are met, a new Board will be appointed for Maple and a mirror board will be appointed for TMX Group.
The investors in Maple comprise of 13 large Canadian financial institutions, including CIBC (TSX:T.CM, Stock forum), National Bank (TSX:T.NA, Stock Forum), Scotiabank (TSX:T.BNS, Stock Forum) and TD Canada Trust.
TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy, including the Toronto Stock Exchange and TSX Venture Exchange.
On Wednesday, TMX Group was trading $49.01 a share. The company has a market cap of $3.7 billion, based on $75 million shares outstanding. The 52-week high and low was $48.85 and $38.11 respectively.