US stock exchange owners to buy TISE for more than £70m

Miami International Holdings operates exchanges throughout the US, and is looking at the Guernsey-based exchange to give it a foothold into Europe.

It already owned nearly 30% of the exchange, which is a private company, before making this bid, which has the backing of the TISE board.

‘The acquisition of TISE represents an attractive international expansion opportunity for MIH, allowing us to further execute on our strategy of operating regulated financial markets both in the US and internationally,’ said Thomas P Gallagher, the chairman and CEO of the group.

‘We are committed to growing our international business and believe that investing additional resources in TISE will help expand its reach and capabilities. We look forward to working with the TISE team to develop new relationships with member firms and issuers and collaborate on opportunities for TISE’s future growth.’

MIH has financial marketplaces in New Jersey, Chicago and Miami, and an international market in Hamilton, Bermuda, using its technology platform and making various acquisitions, including of the Bermuda Stock Exchange.

The company said that it saw TISE as an attractive business with ‘a proven ability to generate shareholder value’. At the end of 2023 it reported record turnover at £10.8m. and profits at £4.9m.

Turnover for the first six months of 2024 was a new high of £6.4m. £7m. was returned to shareholders over that period through payment of dividends.

TISE hosts one of Europe’s major professional bond markets, a sustainable finance segment, and its innovative private markets offering.

MIH described the deal as ‘a compelling opportunity to establish a presence for the group in a European time-zone and market’, and said it would look to grow the business.

TISE chairman Anderson Whamond said that the offer recognised the strength of the business.

‘We are excited about the opportunities to collaborate with MIH to expand TISE’s offering across Europe and internationally,’ he said.

‘This offer is a testament to the significant progress we have made in executing our strategy to grow and diversify the business, as well as an endorsement of Guernsey as a leading international finance centre.

‘Transformed from a local stock and bond market, today TISE is an established operator of public markets with an enlarged portfolio of financial markets and securities services for both public and private companies.

‘The recommended cash acquisition recognises the strength of the business and enables our shareholders to realise the value of their investment.’

The States holds a non-participating share in the exchange and although the sale did not require its go-ahead, it has given its approval. It is expected that the deal will complete through a court-sanctioned scheme of arrangement in the next three months.

Talks on a sale of TISE to an unnamed third party did take place in autumn 2017, but broke down a month later.