Magna International last night announced that the plan of arrangement to eliminate its dual-class share structure had been completed.
Go deeper with GlobalData
Magna’s common shares will commence trading under the symbol ‘MG’ on the Toronto Stock Exchange at the start of trading today, 1 September, 2010.
On Monday an Ontario appeals court rules Magna’s proposed buyout of founder Frank Stronach’s controlling shares could go ahead.
A three-judge panel upheld a lower court decision approving the buyout. The deal won approval from shareholders in July and received Ontario Superior Court approval earlier this month.
But it was appealed by a dissident group of shareholders – including the Canada Pension Plan Investment Board (CPPIB) and the Ontario Teachers’ Pension Plan – who claimed the payoff to Stronach was unreasonable.
Under the deal, the company was to pay the 77 year old entrepreneur US$300m in cash and 9m class A shares in order to give up his controlling class B shares.
Each class B share carries 300 votes, whereas each class A share carries one vote. That has allowed Stronach to control the company while owning just a small part of the equity.
The deal also gives Stronach control of a new electric car parts joint venture with Magna and four years of lucrative consulting fees.
