In SEC filing, Tim Hortons wants to reorganize as Canadian firm

New York City Tim Hortons said Monday that it has started to take steps to try to reorganize as a Canadian public company.

The Canadian coffee-and-doughnut chain made a regulatory filing with the U.S. Securities and Exchange Commission and said its proposed reorganization will include a combination with a newly formed subsidiary. The company would then become a wholly owned subsidiary of a business also named Tim Hortons under the Canada Business Corporations Act.

Tim Hortons said in a statement that the reorganization would help to streamline its operational and administrative functions and help it expand in Canada and overseas. It will also be able to take advantage of lower Canadian tax rates starting the year after the potential reorganization.

Tim Hortons stressed that it still plans to grow its U.S. business and will keep dual listings on the New York Stock Exchange and Toronto Stock Exchange.

The proposed reorganization requires both shareholder and board approval. A special shareholders meeting will be held on Sept. 22.

Tim Hortons had 3,457 systemwide restaurants, including 2,930 in Canada and 527 in the United States as of March 29.