Ontario government orders Magna to disclose more on proposed change in share structure

Magna ordered to disclose more on share proposal

TORONTO — Canadian auto parts maker Magna International said Friday that the Ontario government wants more information about plans to eliminate the company’s dual-class share structure.

Magna said that it intends to comply with the order from the Ontario Securities Commission and it postponed a shareholder meeting Monday where a vote on the proposal was to occur.

Magna wants to allow founder and Chairman Frank Stronach and the Stronach Trust to trade their class B multiple voting shares for $300 million in cash. Stronach would also receive 9 million class A shares in return for his 726,829 multiple-voting shares.

The company has said the proposal would eliminate the Stronach family’s voting control and address shareholder complaints about the stock price.

Two of Canada’s biggest pension fund managers, however, said recently that they will vote against the proposal, claiming it would pay the Stronach family too much and dilute shareholder value.

Magna shares rose 7 cents to $70.14 in afternoon trading.