TORONTO, Ontario – Maple Leaf Foods Inc. (TSE:MFI) ("Maple Leaf") announced today that it has been advised that its two largest shareholders, McCain Capital Corporation ("MCC") and Ontario Teachers’ Pension Plan Board ("Ontario Teachers"), have entered into a shareholders’ agreement with respect to their shareholdings in Maple Leaf Foods. The agreement replaces a prior shareholders’ agreement between MCC and Ontario Teachers’ which has expired.
Under the terms of the agreement Maple Leaf Foods will continue to have a Board of Directors consisting of up to thirteen members. Unless MCC and Ontario Teachers’ otherwise agree, the Board of Directors will consist of three nominees of MCC, two nominees of Ontario Teachers’, the Chief Executive Officer of Maple Leaf Foods and seven independent directors to be mutually agreed to by MCC and Ontario Teachers’. No changes to the present Board of Directors are contemplated. The agreement will continue indefinitely but may be terminated by either party upon one year’s prior notice, which may be given at any time after the agreement has been in effect for two years.
Maple Leaf Foods Inc. is a leading Canadian food processing company. Headquartered in Toronto, Canada, the company employs more than 13,000 people at its operations across Canada and in the United States, Europe and Asia. Maple Leaf Foods reported sales of $3.9 billion in 2000.