MISSISSAUGA, Ont. — Maple Leaf Foods Inc. says it plans to spin off its pork business into a new publicly traded company.
Under the plan, existing Maple Leaf shareholders will receive shares in the new company, while Maple Leaf will keep a 19.9 per cent ownership position.
The two companies will also enter into an evergreen pork supply agreement.
Maple Leaf says the new pork company will continue to provide Maple Leaf Foods with a secure supply of pork at market prices for its prepared foods business.
The plan has been approved by the company’s board of directors and has the support of Maple Leaf Foods’ largest and controlling shareholder, McCain Capital Inc. and the McCain family.
The transaction, which is also subject to shareholder approval, is expected to be completed in 2025.
This report by The Canadian Press was first published July 9, 2024.
Companies in this story: (TSX:MFI)
The Canadian Press
