The Canadian Minister of Heritage has approved a plan by billionaire investor Carl Icahn to take over Lionsgate Entertainment, under the Investment Canada Act, in exchange for Icahn agreeing to maintain Canadian control of Maple Pictures, the independent film production that distributes Lionsgate films in Canada.
"I am very pleased that our investment in Lionsgate has been determined to be of net benefit to Canada," said Icahn who intends to keep the studio's headquarters in Canada with Canadian representation on the company's new board of directors.
But Los Angeles-based Lionsgate, continued to urge its shareholders to block Icahn's $7 per share offer, to gain control of the studio.
"Lionsgate notes the determination by the Minister of Canadian Heritage under the Investment Canada Act and has no comment other than to remind its shareholders that its board of directors recommends that shareholders continue to reject the Icahn Group's unsolicited offer and not tender their shares into the offer," said the studio.
"The offer remains financially inadequate and coercive and is not in the best interests of Lionsgate, its shareholders and other stakeholders..."
