TORONTO Tim Hortons Inc. said Tuesday that its shareholders have approved the company’s reorganization plans to merge its U.S.-based subsidiaries into its Canadian corporation.
The move, which will require a conversion of stock from any holdings in the U.S. operation to stock in the new Tim Hortons Inc., will allow the company to take advantage of lower tax rates in Canada and realize operational and administrative efficiencies, it said.
The company currently is incorporated in the state of Delaware, but as of Sept. 28 will be fully incorporated in Canada.
It will not change operations or growth plans, Tim Hortons said, but will serve to incorporate the company in the jurisdiction where it conducts the largest part of its business and will better align investor and analyst expectations with its corporate structure.
Tim Hortons, parent to about 3,437 units across North America, will continue to trade on both the Toronto and New York Stock Exchanges.
Contact Elissa Elan at [email protected].