Coffee giant Tim Hortons Inc. is returning its home base to Canada with a plan to reorganize and convert to a Canadian-based corporation.
The popular coffee house chain (TSX: THI) is currently owned by a U.S.-based parent company after its spinoff from U.S.-based burger giant Wendy’s in 2007.
Tims says the reorganization will save money due to Canada’s lower tax rates and make international expansion easier.
The move will create a Canadian subsidiary with which Tims will merge, creating a company incorporated under the Canada Business Corporations Act.
Tim Hortons shareholders will hold the same amount of stock as before, and the company will continue to operate under the Tim Hortons name with stock listings on the TSX and the New York Stock Exchange. The chain has struggled to boost sales in the United States despite thriving in Canada.