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.
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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.
