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Element Financial shareholders approve company split

The company said Element Fleet will become the world's largest publicly traded fleet management services firm


September 22, 2016
The Canadian Press
The Canadian Press

TORONTO—Shareholders of fleet management and equipment finance company Element Financial Corp. voted to approve a decision to split the company in two, the firm said.

Element Financial plans to divide the company into Element Fleet Management Corp. and ECN Capital Corp.

The company said Element Fleet will become the world’s largest publicly traded fleet management services firm, while ECN Capital will operate its equipment financing business.

Shareholders, who will receive one share in each of the new companies for each Element Financial share they hold, voted 99.52 percent in favour of the plan.

The split is still subject to certain conditions, including final court approval.

Element Financial expects the deal to close October 3.

“This separation transaction is the culmination of the effort of all of our employees and the support of our customers and partners over the last five years to build Element into North America’s largest independent equipment finance and fleet management company,” Element CEO Steven Hudson said in a statement.

News from © Canadian Press Enterprises Inc. 2016