TMX Group Inc. (TSX:X) announced on Wednesday that it has purchased a 16% minority stake in the Bermuda Stock Exchange, making TMX Group one of the largest shareholders of the BSX.
The company also announced that Tom Kloet, CEO of TMX Group, will be joining the BSX board of directors.
The announcement comes at a time of increased business activity between Bermuda and Canada, according to TMX Group. Specifically, a Tax Information Exchange Agreement was signed between the two countries earlier this year, and the BSX gained recognition as a Designated Stock Exchange under Canada’s Income Tax Act, effective October 31, 2011.
“This investment represents TMX Group’s commitment to looking beyond Canada for opportunities,” Kloet said. “I am certain we will be well aligned as we consider future initiatives together.”
Wojciechowski added: “I’m delighted to welcome TMX Group as a BSX shareholder and Tom Kloet to our board of directors. Canada and Bermuda share a long history and important jurisdictional ties, this strategic investment can only strengthen this long-standing relationship. We look forward to exploring new avenues of economic development and mutually beneficial cooperation in our domestic and international capital markets.”
To mark the announcement, Greg Wojciechowski, president and CEO, BSX, will join Kloet to open trading on Toronto Stock Exchange on Wednesday morning.