With its tender offer deadline fast approaching, it's time for Maple Group Acquisition Corp. to decide whether it will give shareholders more time to decide on its proposed takeover of TMX Group .
At the moment, all signs point to a new September deadline, or later. That's an extension of at least a month from the current Aug. 8 expiry ate.
While Maple won't confirm that an extension is coming, the signs are now clear. The consortium of 13 financial institution has decided that it will wait for full regulatory approvals before its tender offer expires. That means both the Competition Bureau and the provincial regulators must rule before shareholders have to decide if they want to tender their shares.
In doing so, Maple has opted for a different tactic than TMX. Rather than wait for regulatory approvals, TMX decided to hold its shareholder vote before the provincial regulators and federal government weighed. In the end, that decision saved at least the federal government from having to rule because shareholders ultimately shot the plan down. (This tactic was also employed by NYSE Euronext and Deutsche Borse. Shareholders on both sides have approved that deal, and the exchanges are now waiting on European Commission approval.)
For now, Maple is saying that the Competition Bureau is likely to rule in the early fall, but no timeline has been provided for the provincial regulators who hold an equally important role. While most of the attention thus far has been paid to the Competition Bureau, TMX has agreements with Ontario and Quebec such that "no person or company (or combination of persons or companies acting jointly or in concert) may beneficially own or exercise control or direction over more than ten per cent of any class or series of the voting securities of TMX Group." The regulators will have to rule if the 13 financial institutions are acting jointly or in concert.
There is also a chance that something comes of the current talks between TMX' board and Maple. At this point these are just light discussions, but anything more serious could also push back the tender offer expiry date.