Lionsgate shareholders approve strategic reorganization

Lions Gate Entertainment Corp (NYSE:LGFa). (NYSE:LGF.A, LGF.B) shareholders have overwhelmingly approved a series of proposals related to a strategic reorganization, as detailed in a recent 8-K filing with the U.S. Securities and Exchange Commission. The key decisions were made during the company’s Annual General and Special Meeting held on Tuesday.

The approved proposals include a significant restructuring plan that will separate New Lionsgate from Lionsgate, with the latter holding the Starz business post-reorganization. Shareholders of Lionsgate Class A and Class B shares voted in favor of the arrangement, with 99.82% and 99.27% approval, respectively.

Additionally, shareholders sanctioned the adoption of several governance provisions, such as advance notice for director nominations and the ability for the board to set the number of directors and auditor remuneration, without requiring shareholder approval. These changes are expected to take effect upon completion of the proposed transactions.

All of the company’s director nominees were elected, with the re-appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2025, receiving unanimous shareholder support.

Furthermore, shareholders endorsed an advisory vote on executive compensation and approved the assumption of the 2025 Performance Incentive Plans for New Lionsgate, Starz Entertainment Corp., and Lionsgate. An advisory vote on a reverse stock split of Starz common shares on a 15-to-1 basis following the share exchanges was also approved with a 99.59% majority.

The reorganization is expected to be finalized on or about May 5, 2025. This strategic move is seen as a way to streamline operations and potentially enhance shareholder value. The information presented in this article is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.