Magna International Inc. and Savings Bank of the Russian Federation (“Sberbank”) announced that both have jointly submitted a revised offer to acquire a 55 per cent interest in Adam Opel GmbH (“Opel”) as part of a proposed solution that is intended to assure the long-term viability of Opel. Under the offer, the acquired 55 per cent interest in Opel would be owned by a 50:50 Magna/Sberbank consortium, with General Motors retaining a 35 per cent interest and Opel employees acquiring 10 per cent as part of a new labour framework. The offer was made in response to a request by General Motors for final offers regarding Opel. The offer contemplates a total equity investment by the Magna/Sberbank consortium of Euro 500 million over time.
General Motors is expected to review all submitted offers for Opel and determine the next steps in the sale process. If the offer is successful, any transaction between Magna/Sberbank and General Motors would still be subject to finalization of definitive agreements and other conditions, including government-backed financing. Therefore, there is no assurance at this time that any transaction will result from the current involvement of Magna and Sberbank.
If the consortium is successful in completing the acquisition, Magna will put in place appropriate “firewalls” to ensure that its current business will operate independently from Opel.