Auto parts supplier Magna International Inc. announced today that it has made separate proposals to acquire the outstanding shares of its three public subsidiaries
Under the proposal involving Intier Automotive Inc., Decoma International Inc. and Tesma International Inc., Magna would acquire all the outstanding Class A Subordinate Voting Shares of each subsidiary not owned by Magna.
Each proposal, which would be implemented by way of a court-approved plan of arrangement under Ontario law, is independent and not conditional on completion of the other transactions.
In addition to court approval, each transaction would require the approval of the shareholders of each subsidiary, including by way of a majority of the votes cast by holders other than Magna and its affiliates and other insiders.
Under the terms of the proposals and as required by Ontario law, the respective boards of directors of Intier, Decoma and Tesma would each establish an independent committee to consider the proposal from Magna.
Magna currently owns an approximate 86% equity interest in Intier, 74% equity interest in Decoma and 44% equity interest in Tesma.
The company also announced it will build a $73-million U.S. factory in Muncie, Ind. The plant will produce powertrain components for General Motors Corp., creating more than 300 jobs, the company said Friday.
A subsidiary of the Aurora, Ontario, company, Magna Drivetrain of America Inc., will employ 310 people when it reaches full production in the next three years, officials said. Magna expects to eventually hire a total of 420 people.
The factory will produce transfer cases for GM’s next-generation full-sized pickup trucks and sport utility vehicles.
Magna International has approximately 81,000 employees in 217 manufacturing operations and 49 product development and engineering centers in 22 countries. Magna Drivetrain has facilities in the United States, Canada, Mexico, Austria and Germany.
Have your say: