Toronto-based Maple Leaf Foods announced that it agreed to a “shareholder rights plan” as a possible change in its two largest asset owners looms. In a company press release and Reuters report, Canada’s largest food processor said it approved the plan to make sure its shareholders get equal treatment in the event of a 20% or greater acquisition of company shares.
An agreement between McCain Capital Corp. and the Ontario Teachers' Pension Plan Board -- Maple Leaf’s largest shareholders -- expires June 30. The plan, effective immediately, gives current shareholders the right to purchase shares at a 50% market discount if any party attempt to acquire 20% or more of the shares. The plan runs three years, but will expire in six months absent shareholder approval.