(June 7) – TSE Inc. has revealed its internal valuation of its shares in a letter to shareholders.
In a letter dated May 25 it was revealed that each share of TSE Inc. has been valued at $120,000. Since 20 shares were issued for each seat on the exchange, each seat is implicitly valued at $2.4 million.
For now the shares of the TSE are not marketable so dealers will be required to value the shares at the carrying cost of the seat rather than at market value. Currently shares can’t be exchanged for two years from the TSE’s April 3, 2000 demutualization date without consent of the TSE’s directors or a majority vote by the shares’ holders. Resale of the shares is restricted under securities laws unless the TSE files a prospectus or discretionary relief is granted by regulators.
-IE Staff