The Ontario Securities Commission (OSC) last night issued an order requiring Magna to provide additional disclosure in its circular before it can proceed with a shareholder vote. The OSC decision follows this week's hearing to review Magna's proposed transaction to eliminate multiple voting shares.
"We have reviewed the OSC findings and believe the regulator has come to an appropriate decision", said Blair Cowper-Smith, OMERS Executive Vice President and Chief Legal Officer. "The enhancement of disclosure in the meeting circular as required by the OSC will lead to a better an opportunity for an informed decision by shareholders. We look forward to seeing the new disclosure to enable us to decide on our next steps."
As a major participant in the Canadian capital markets, OMERS believes this decision is positive for shareholders and will encourage others to exercise caution when proposing complex transactions that require shareholder approval.