WINNIPEG (Reuters) – Two directors of Maple Leaf Foods who represented a key shareholder have resigned in a dispute over the food processor’s strategic plan.
Wayne Kozun and William Royan represented the Ontario Teachers’ Pension Plan, which has a 25 percent stake in the food processor.
Teachers sold a 10 percent stake in Maple Leaf to activist hedge fund West Face Capital earlier this year.
The directors resigned Oct. 28 in a disagreement over Maple Leaf’s plan to drive up earnings through a large capital investment in its plants, the company said in a news release.
Read Also
Hogs’ transport stress called costly
Poor trailer design and transportation stress are killing pigs and costing the pork industry millions of dollars in penalties, meat quality downgrades and failed welfare audits, according to research by a federal scientist.
Teachers and West Face are reportedly against the spending plan.
The same day, Maple Leaf reported a third-quarter loss after taking pretax charges, but its adjusted earnings matched expectations, said analyst Robert Gibson of Octagon Capital.
It lost $16.1 million in the quarter to Sept. 30 after $48.1 million of non-cash pretax adjustments. It earned $22.5 million last year.
Adjusted earnings this quarter were $64.5 million compared to $63 million last year
Chief executive officer Michael McCain said rising raw grain and meat costs affected revenue.
Sales were little changed from the year-before quarter at $1.29 billion.
