(September 25, 2009): The TSX announced today it received approval from the Ontario Securities Commission to require public issuers to obtain shareholder approval for public company acquisitions that result in the issuance of 25% or more of their outstanding shares.

“We are very pleased with this decision,” said Wayne Kozun, Senior Vice-President, Public Equities at the Ontario Teachers’ Pension Plan (Teachers’). “Shareholders will now have the right to a meaningful say on highly dilutive deals.”

Prior to the change (effective in November 2009) and unlike other major exchanges, TSX rules did not limit the number of shares that could be issued by a company without shareholder approval when acquiring a widely-held public company.

“With this rule change, the TSX is aligning its governance standards with that of other major international exchanges and improving shareholder democracy, making our capital markets more attractive,” said Mr. Kozun. He also noted that setting the threshold at 25% dilution balances governance and regulatory concerns. “It’s good for shareholders, good for investor confidence, and puts Canada’s leading exchange on par with New York and London on this issue.”

Teachers’ has been a vocal supporter of changing this TSX rule since 2006. The Hudbay/Lundin and Goldcorp/Glamis Gold transactions are examples of recent scenarios where the principles at play in this new rule would have been of significant effect.

Contact:

Deborah Allan
Director, Communications and Media Relations
Ontario Teachers' Pension Plan
(416) 730-5347
deborah_allan@otpp.com