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Shareholders reject Contrans plan to consolidate shares

Toronto's Bay Street financial district.

Fred Lum/The Globe and Mail/Fred Lum/The Globe and Mail

Contrans Group Inc. says a proposal to reorganize its dual class share structure into one class did not receive the necessary shareholder approvals at its annual meeting Monday and will not proceed.

The Woodstock, Ont.,-based transport company said the reorganization proposal did not receive the required 66.6 per cent of class A voting shares, even though a majority of shares of that class were voted in favour of the plan.

The proposal had been supported by Contrans chief executive officer and chairman Stan Dunford and director Robert Burgess who, together with their associates, control the multiple-vote B shares.

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Mr. Dunford and people associated with him would have had about 17.9 per cent of the Contrans shares under the proposed reform, which was announced April 4.

"While the proposal received substantial shareholder support, the company respects the decision of its shareholders given at the meeting," Contrans said in a release Tuesday.

"It does not intend to present any additional proposals of this nature and will continue to focus on its business operations, which remain strong."

The Ontario-based concern, which provides a range of shipping services in Canada as well as the eastern, mid-western and southern United States said Monday that net earnings in the quarter were $5.3-million, or 15 cents per share.

That was up from $3.5-million, or 10 cents per share, in the same 2011 quarter.

Revenue for the three months ended March 31 was $121.4-million, up from $101.1-million.

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