LONDON (dpa-AFX) - Maple Group Acquisition Corp. said Sunday that Desjardins Financial Group, Dundee Capital Markets, GMP Capital Inc. and Manulife Financial have each agreed to become an investor in Maple in connection with its bid to acquire TMX Group Inc. (X.TO) in a transaction valued at C$3.6 billion.
Maple Group is a corporation formed by five of Canada's largest pension funds and four Canadian bank-owned investment dealers.
Desjardins is a financial cooperative group, Dundee Capital Markets is an independent broker-dealer, GMP Capital Inc. is an independent financial services firm, and Manulife Financial is an Canadian-based financial services group.
Upon completion of the Maple transaction, existing shareholders of TMX will continue to own about 40% of Maple's outstanding shares, the public pension fund investors will own about 31%, the bank-owned investment dealers will own about 22% and the new Maple investors will own about 7%.
As before, no shareholder of Maple will own more than 10% of Maple's total shares outstanding, consistent with the existing regulatory framework.
In February this year, London Stock Exchange Group Plc (LSE.L) agreed to acquire TMX for C$3.2 billion.
Meanwhile, Maple Group, comprising Canadian pension funds and banks, came up with a superior offer of C$3.6 billion to acquire TMX.
Nevertheless, TMX Group rejected Maple's bid as being superior, and alleged that the offer lacked information and involved execution risks.
TMX Group contended that a merger with LSEG would create a new, globally competitive exchange group, with preservation of its businesses in Canada, and an improved ability to attract new foreign investment.
Still, the merger with LSEG is subject to certain conditions, including the receipt of requisite approval by TMX Group's shareholders, among others. If all necessary approvals and conditions are met, it is expected that the arrangement will be completed in the fall of 2011.
Meanwhile, an unfazed Maple Group recently said it plans to commence an offer for shares of TMX Group.
X.TO closed Friday's regular trading on C$43.80, down 50 cents or 1.13%.
LSE.L ended Friday's regular trading on 943.50 pence, down 1.50 pence.
Copyright RTT News/dpa-AFX