TORONTO, July 30 /CNW/ - TMX Group Inc.'s (TMX Group) Board of Directors
has authorized the purchase of up to 7,592,582 of its common shares by way of
normal course purchases on Toronto Stock Exchange (TSX), subject to regulatory
approval. These common shares represent 10% of the public float on July 29,
2008. By July 22, 2008, TMX Group had purchased the maximum number of common
shares possible under its previous NCIB which was announced on July 25, 2007.
Under that plan TMX Group purchased 6,841,051 of its common shares for an
aggregate of $292.7 million and a weighted average price per share of $42.79.
"In making the decision to launch a new share repurchase program, the
Board of Directors considered various factors, including the company's ongoing
ability to generate cash, its proven ability to raise capital in the debt
markets and the resources required to execute growth strategies," said
Wayne Fox, Chair of TMX Group. "Our decision is also consistent with the
comments we made when we announced the combination with the Montreal
The purchases may commence on the date that is two trading days after the
latest of (i) the date of acceptance by TSX of TMX Group's notice of intention
in final executed form, and (ii) the date that TMX Group issues the press
release required by TSX, but not earlier than August 7, 2008, one day after
the expiry date of the previous NCIB. It is expected that the purchases will
terminate not more than one year after the purchases commence, or on such
earlier date as TMX Group may complete its purchases.
The Company intends to enter into a new pre-defined plan with its
designated broker to allow for the repurchase of common shares at times when
the Company ordinarily would not be active in the market due to its own
internal trading blackout periods, insider trading rules or otherwise.
Commenting on the NCIB, Thomas Kloet, Chief Executive Officer of
TMX Group, said "Implementing this NCIB is a good use of our resources, while
providing flexibility as we pursue our growth strategies. I am very optimistic
about TMX Group's future prospects."
Purchases will be made by TMX Group in accordance with applicable
regulatory requirements and the price which TMX Group will pay for any such
common shares will be the market price of such shares at the time of
acquisition. TMX Group may enter into one or more private agreements to
purchase common shares, provided that it first obtains an order from the
relevant securities regulatory authority to permit such agreements. All
purchased common shares will be cancelled.
TMX Group believes that the market price of its common shares could be
such that their purchase may be an attractive and appropriate use of corporate
funds in light of potential benefits to remaining shareholders.
To the knowledge of TMX Group, no director, senior officer or other
insider of TMX Group currently intends to sell any common shares under this
bid. However, sales by such persons through the facilities of TSX may occur if
the personal circumstances of any such person change or any such person makes
a decision unrelated to these normal course purchases. The benefits to any
such person whose shares are purchased would be the same as the benefits
available to all other holders whose shares are purchased.
This press release contains "forward looking information" (as defined in
applicable Canadian securities legislation) that is based on expectations,
estimates and projections as of the date of this press release. Examples of
such forward looking information in this press release include, but are not
limited to factors relating to the business, financial position, operations
and prospects of TMX Group, which are subject to significant risks and
uncertainties. Forward looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of TMX Group to be materially different from any
future results, performance or achievements expressed or implied by the
forward looking information in this press release.
We have no intention to update this forward looking information, except
as required by applicable securities law. This forward looking information
should not be relied upon as representing our views as of any date subsequent
to the date of this press release.
About TMX Group (TSX-X)
TMX Group's key subsidiaries operate cash and derivative markets for
multiple asset classes including equities, fixed income and energy products.
Toronto Stock Exchange (TSX), TSX Venture Exchange, Montreal Exchange (MX),
Natural Gas Exchange (NGX), Shorcan and other TMX Group companies provide
trading markets, clearing facilities, data products and other services to the
global financial community who access Canada's capital market. From its home
base in Canada TMX Group reaches internationally, as its equity markets are
the 7th largest in the world by issuer market capitalization and list more
resource companies than any other exchange group. TMX Group is headquartered
in Toronto and maintains offices in Montreal, Calgary and Vancouver. For more
information on TMX Group, visit our website at www.tsx.com.
For further information:
For further information: Jean-Charles Robillard, Director, Corporate
Communications, TMX Group, Office: (514) 594-3567, E-Mail: firstname.lastname@example.org;
Paul Malcolmson, Director, Investor and Public Relations, TMX Group, Office:
(416) 947-4317, E-Mail: email@example.com