Bermuda stock exchange owner takes surprise stake in TISE

Friday 28 April 2023

The owner of the Bermuda Stock Exchange has snapped up just under 15% of Guernsey’s International Stock Exchange.

TISE's board knew nothing about the deal until it unfolded earlier this month, with the shareholding just below the amount that would have needed approval by the Guernsey Financial Services Commission.

The Stock Exchange quickly pushed out a strategy update to stress how well it was performing and saying that the current share price did not adequately reflect the Group’s prospects.

TISE declined to comment about the deal beyond the market updates, as did the company behind the move, with industry insiders suggesting it was unlikely to be purely an investment and could be the first step to taking more control.

MIH East Holdings now owns 14.96%.

MIH East Holdings is a wholly owned subsidiary of Miami International Holdings which owns the MIAX Exchange Group; Minneapolis Grain Exchange, LLC; The Bermuda Stock Exchange and Dorman Trading LLC.

When MIH moved for the Bermuda Stock Exchange, it did so in stages. It acquired a majority interest in November 2019 and took 100% ownership December 2020.

In its strategy update, TISE said: “MIH did not contact the Board before making its recent purchase of shares in the Company and has not approached the Board in connection with any wider strategic objectives regarding the Group.”

After giving an upbeat assessment of its trading position, it said: “During the last 25 years, TISE has established itself as an experienced operator of public markets and transformed from a local stock and bond market into a leading European stock exchange for international bond listings. 

“With the launch of TISE Private Markets and an enlarged portfolio of products and services, the Group is well positioned for long-term growth. The Board believes that the current share price does not adequately reflect the Group’s prospects and sees significant potential for enhancing shareholder value as the Group’s strategy is successfully executed.”

MIH East Holdings was incorporated in England on 20 March, with MIAX Chief Financial Officer Lance Emmons and one of its principal founders Thomas Gallagher listed as the two directors.

Shares

The market announcement said that MIH bought 425,000 ordinary shares.

Bailiwick Investments Limited sold 83,964 ordinary shares, taking its TISE stake at the time down to 10.56%.

Mark Thistlethwayte sold 50,000, dropping his interest to 7.04%.

Pula Investments Limited sold 100,000 ordinary shares and so it controlled 5.28%.

Fiona Le Poidevin also sold 100,000 and so her interest accounted for 3.52% after the deal.