LSE and TMX sweeten deal for merger
THE LONDON Stock Exchange and Toronto bourse operator TMX Group have agreed to pay a special dividend of C$660m (£415.8m), in the latest scramble to win over shareholders.
TMX shareholders must decide next week whether to back the friendly deal between the two exchanges and a hostile bid from the Maple consortium of Canadian banks and pension funds. LSE shareholders must also vote on the planned merger.
Under the plans revealed last night, LSE shareholders will get an 84.1p per share special dividend payment from the combined company, should the deal tie-up. TMX shareholders would get a one-off payment of C$4 a share.
About 45 per cent of the payment would go to TMX shareholders, with LSE shareholders getting the rest.
The LSE and TMX said it had financed the sweetener using cash reserves and debt. The LSE added it had agreed additional funding commitments with Barclays Capital and Morgan Stanley for £100m of short-term headroom facilities.
TMX again rebuked the hostile offer from Maple last night, saying the group had failed to provide any more proof its offer would lead to a superior price.
London Stock Exchange chief Xavier Rolet said: “The special dividend and our new dividend policy reflect the strong performance of our organisations and signal our absolute commitment to delivering both growth and shareholder value.”