Flex shareholders approve separation of cloud and power unit into Axiom
Flex shareholders approved a bonus share issue and a capital reduction to distribute Axiom Solutions International shares. All three proposals passed at a Nov. 2 extraordinary meeting.
Key takeaways
- Flex (FLEX) shareholders approved all three proposals at an extraordinary meeting on Nov. 2, including a capital reduction to distribute Axiom Solutions International shares to holders. Shareholders also approved extra annual cash pay for the Lead Independent Director.
Flex (FLEX) shareholders approved all three proposals at an extraordinary general meeting on Nov. 2, clearing the way for the separation of the company's cloud and power infrastructure business.
Shares were little changed after hours at 4:49 p.m. ET, from a $66.70 close.
About 84.57% of the 369,460,443 shares outstanding and entitled to vote were represented, 312,465,705 ordinary shares in all.
The first proposal, a bonus share issue of one share for each existing Flex ordinary share held on a record date set by the board, drew 310,323,729 votes for and 213,425 against, with 1,928,551 abstentions.
The second proposal, a court-approved capital reduction under Section 78G of the Companies Act 1967 of Singapore, passed with 310,236,918 votes for and 326,300 against. It will effect a distribution in specie of about 88.0% to 94.0% of Axiom Solutions International common stock, paid pro rata to holders of record on the record date.
Lead Independent Director pay
Shareholders also approved $50,000 in additional annual cash compensation for the Lead Independent Director. The director may take it in company shares, cash or a combination. The proposal received 309,967,621 votes for and 392,044 against, with 2,106,040 abstentions.
The definitive proxy statement was dated Oct. 5 and first mailed to shareholders on or about that date.