Bombardier Inc. is seeking its shareholders' blessing for a reverse stock split.
The Montreal-based business-jet maker said on Friday it wants to change its articles of incorporation so it can potentially consolidate the company's Class A and B shares at a ratio between 10-for-1 and 30-for-1. The measure requires a shareholder vote at Bombardier's annual meeting on May 5.
In a release, Bombardier said a share consolidation would allow it to cut down its number of common shares to a level that's on par with other companies that have a similar market capitalization. It added that the precise ratio would be determined at a later date, and at the discretion of its board of directors.
As of the close of trading Friday, Bombardier had a market capitalization of almost $3.6 billion. It has almost 2.1 billion Class B shares and 308.7 million Class A multiple-voting shares, according to its website.
Since their recent high in September, Bombardier’s Class B shares have shed close to one-third of their value on the Toronto Stock Exchange.
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