Cinar Corporation has announced that should the proposed sale of all outstanding shares to an investor group headed by former Nelvana executives Michael Hirsh and Toper Taylor and TD Capital Canadian Private Equity Partners go through, president and CEO Stuart Snyder will leave the company.

Also, executives representing the investor group would replace the current board of directors, and other senior executives at the Montreal edutainment giant would be looking at a company exit.

‘It is clear, in my opinion and that of the board, that [Hirsh’s] group has the financial resources, expertise and background in the industry to advance Cinar to a new level,’ said Cinar chairman Robert Despres in a statement.

On Feb. 17, registered shareholders will vote on the proposed sale. (The voting date was moved up from previously announced dates of Jan. 15 and Feb. 5.) The vote will take place at the Fairmont Queen Elizabeth Hotel in downtown Montreal.

For the sale to go through, two-thirds of holders of both variable multiple voting shares and limited voting shares must vote in favor. Ousted company cofounders Micheline Charest and Ron Weinberg hold approximately 96% of the variable multiple shares and have agreed to vote their shares in favor of the deal.

The terms of the deal call for shareholders to be paid US$3.60 per share plus a pro rata distribution of proceeds from outstanding litigation. Cinar financial advisor Merrill Lynch has approved the proposed shareholder payments.

-www.cinar.com