Dorel postpones shareholder vote
MONTREAL – Acting on a recommendation from a committee of independent directors, the board of consumer goods giant Dorel Industries as postponed a previously scheduled special meeting of shareholders to February 16, 2021. The meeting is to vote approval of a plan of arrangement that will see the company’s founding family take the company private in collaboration with private equity firm Cerberus Capital Management.
Late last year, Dorel’s four senior-most executives – including long-time chairman and chief executive officer Martin Schwartz as well as Jeffrey Schwartz, executive vice president and chief financial officer; Alan Schwartz, executive vice president of operations; and, Jeff Segel, executive vice president of sales and marketing – spearheaded a move that will see them, in conjunction with Cerberus Capital, acquire all the company’s outstanding common shares for C$14.50 in cash.
The shareholders’ meeting was originally scheduled for January 12, 2021. Dorel will prepare an amended management information circular and related proxy materials for distribution to shareholders in January 2021.
In a statement, the board said it is postponing the meeting to give shareholders more time to consider the terms of the arrangement. It also believes the additional time will allow shareholders to consider the effects of the second wave of the COVID-19 pandemic on Dorel’s operations and financial results.
Dorel announced late last week it had received approval to delay the meeting from the Superior Court of Québec.
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