Magna International Inc., Canada's largest auto-parts maker, said it will comply with a provincial agency's order to make additional disclosures before proceeding with a vote to eliminate its dual-class share structure.
"We intend to work cooperatively with the Ontario Securities Commission staff to address the commission's concerns and comply with the with OSC's additional disclosure requirements," Chief Financial Officer Vincent Galifi said in a statement.
Magna said it suspended the planned June 28 special meeting of shareholders without setting a new date. The Aurora, Ontario- based company wants to end founder Frank Stronach's control through the two classes of shares in exchange for C$965 million ($925 million) based on yesterday's closing price in Toronto.
The commission said Magna must provide more information to shareholders before they vote. A three-member panel of the OSC said the "circular does not provide sufficient disclosure to shareholders to permit them to make an informed decision," according to a statement.
The OSC sought approval from the panel led by Vice Chairman James Turner for a cease-trade order on Magna's Class 'B' shares or a ban on issuing new 'A' shares to prevent the company from converting stock that gives Stronach control.
"We welcome a vote," commission lawyer James Angus told the panel at a hearing in Toronto yesterday. "We want the voters to be properly informed."
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