Element Financial CEO Steve Hudson is seen in this file photo.J.P. MOCZULSKI/THE GLOBE AND MAIL
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 Tuesday.
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 per cent in favour of the plan.
The split is still subject to certain conditions, including final court approval.
Element Financial expects the deal to close Oct. 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 Tuesday.