Magna Announces Class A Subordinate Voting Share Offering
12 June 1998
Magna Announces Class A Subordinate Voting Share Offering
AURORA, Ont., June 12 /CNW-PRN/ - Magna International Inc. (TSE:MG.A,
MG.B; ME:MG.A; NYSE:MGA) announced today that it has filed with each
securities commission in Canada and with the Securities and Exchange
Commission in the United States a preliminary short form prospectus and a
registration statement under the Multijurisdictional Disclosure System for the
issue of 3.5 million Class A Subordinate Voting Shares. The issue is being
underwritten at Cdn. $101.45 per share or U.S. $69.02 per share by Goldman
Sachs & Co. and Goldman Sachs Canada pursuant to a definitive underwriting
agreement executed today. The underwriters will have an option to purchase up
to 525,000 additional Class A Subordinate Voting Shares at the same price per
share to cover over-allotments.
Magna intends to use the net proceeds of approximately Cdn. $346.2
million from this offering to replenish cash resources used to fund a portion
of the Cdn. $437.9 million cash purchase price for the acquisition of 66.8% of
Steyr-Daimler-Puch AG and 50% of Steyr-Daimler-Puch Fahrzeugtechnik AG & Co.
KG, which closed on June 3, 1998. Such proceeds along with existing cash
balances will be used primarily to further the Company's global business
strategy through acquisitions, investments in new product and process
technologies and investments in fixed assets, as well as for general corporate
purposes.
Magna, one of the most diversified automotive suppliers in the world,
designs, develops and manufactures automotive systems, assemblies and
components, and engineers and assembles complete vehicles, primarily for sale
to original equipment manufacturers of cars and light trucks in North America,
Europe, Mexico, and South America. Magna's products include: exterior
decorative systems; interior products including complete seats, instrument and
door panel systems and sound insulation; stamped and welded metal parts and
assemblies; sunroofs; electro-mechanical devices and assemblies; a variety of
plastic parts, including body panels and fascias through Decoma International
Inc.; various engine, powertrain and fueling and cooling components through
Tesma International Inc.; and a variety of drivetrain components and complete
vehicle engineering and assembly through the Steyr-Daimler-Puch Group.
Magna has over 49,000 employees in 155 manufacturing operations and 30
product development and engineering centres in 16 countries.
A registration statement and/or prospectus relating to these securities
has been filed with the regulatory authorities referred to above but has not
yet become effective. These securities may not be sold nor may offers to buy
be accepted prior to the time the registration statement becomes effective.
This Press Release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities law of any such
jurisdiction. Copies of the preliminary prospectus may be obtained from
Goldman, Sachs & Co., 85 Broad Street, New York, N.Y. 10004 and Goldman Sachs
Canada, 150 King Street West, Toronto, Ontario M5H 1J9.