Published on : Saturday, March 25, 2017
The renewed rights plan includes amendments to take into consideration the changes to the take-over bid rules that came into force in Canada on May 9, 2016.
It is not being adopted in response to any specific proposal to acquire control of Air Canada, nor is the Board of Directors aware of any pending or threatened take-over bid for Air Canada. The renewed rights plan is similar to plans recently adopted by other Canadian companies and approved by their shareholders.
The renewed rights plan will ensure that Air Canada and its shareholders continue to receive the benefits associated with Air Canada’s current shareholder rights plan, which is due to expire at the close of business on the date immediately following Air Canada’s 2017 annual meeting of shareholders. As with the current plan, the renewed rights plans is designed to ensure that all shareholders of Air Canada are treated fairly in connection with any take-over offer or other acquisition of control of Air Canada.
The renewed rights plan will be effective at the close of business on the date immediately following its confirmation and approval by shareholders at Air Canada’s annual meeting of shareholders scheduled for May 5, 2017. If so approved, the renewed rights plan will remain in effect until the close of business on the date of Air Canada’s annual meeting of shareholders in 2020 and would be renewed in accordance with its terms for an additional period of three years (from 2020 to 2023) provided that the shareholders ratify such renewal at or prior to the annual meeting of shareholders to be held in 2020.
Source:- Air Canada