“Canada's regulations and standards make the region attractive for activist campaigns. Canada is particularly attractive for smaller activist funds which have recently enjoyed a great deal of success targeting smaller material focused companies.”
Jay Frankl, Senior Managing Director
Country:
Canada
Average % of insider ownership:
Activism
Threat Level
To learn more about this country, please click on the tabs below
With a regulatory environment that is viewed as more activist-friendly than the U.S., Canada is now FTI Consulting’s third most attractive jurisdiction for activism in 2017. The basic materials sector, which ranks as Canada’s third largest industry, remains the industry of choice for activists particularly at the micro and small cap level.
Shareholders must disclose a press release and warning report, upon acquiring 10% or more of an outstanding class of shares within two business days; additional disclosure is required when adding two percent to the ownership above.
Like the U.S., Canadian regulations allow for looser 13G type disclosure when an investor does not intend to influence the strategic direction of the company.
Canadian companies have very few corporate defense options, which makes Canada attractive to activists. For example, shareholders vote annually on all directors. This permits the full board to be removed in one voting period.
Basic defenses such as advance notice by-laws and proxy cut-off times are becoming more common.
Although forum selection by-laws are not common, newly-IPOed companies are increasingly adopting them. A small number of Canadian companies also boast enhanced quorum provisions.
Top Campaigns by Type
1. Removal Of CEO Or Other Board Member
2. Gain Board Representation
3. Remuneration
Campaigns By Year
Total
Campaigns
Notable Invested Activists
• Mouvement d’éducation et de défense des actionnaires (MÉDAC)
• West Face Capital
• M&G Investments
Recent activism campaigns
| Hudson's Bay Company | VS. |
Land and Buildings |
| Methanex Corporation | VS. |
M&G Investments |
| Aecon Group Inc. | VS. |
Crescendo Partners |
Total Active
Campaigns
Contact FTI Consulting
Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com
Americas Head of Capital Markets Communications
Senior Managing Director
+1 (312) 553 6707
Bryan.Armstrong@fticonsulting.com
Head of Activism and M&A Solutions
Senior Managing Director
+1 (202) 312 9216
Jason.Frankl@fticonsulting.com