MONTREAL—Mega Brands said yesterday that two outside proxy advisory firms have recommended that the company’s common shareholders approve its recapitalization plan.
The toymaker said on Monday that Glass Lewis & Co. and RiskMetrics Group had both recommended that common shareholders vote to approve the Mega Brand’s recapitalization transaction initiated on Jan. 14, 2010. Glass Lewis and RiskMetrics are providers of proxy research and voting recommendations to institutional shareholders.
"We are pleased that RiskMetrics and Glass Lewis are recommending that their subscribers who hold common shares of Mega Brands vote ‘for’ the transaction," said Keith P. Bowman, chairman of the toymaker’s Independent Committee of the Board of Directors.
The Board of Directors of the Corporation unanimously recommends that common shareholders vote in favor of the transaction at the Special Meeting of Shareholders, which will be held in Montreal on March 16.
Under the recapitalization transaction initiated by the company in January, Mega Brands would reduce its debt by approximately US$286.6 million and its annual interest expenses by approximately US$30.0 million.
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