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.