Magna announces convertible preferred share offering
2 September 1999
Magna announces convertible preferred share offering
AURORA, ON, Sept. 2 /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 Preferred
Securities in Canada and Cumulative Quarterly Income Preferred Securities
(QUIPS) in the United States. The issue is being underwritten in Canada by an
underwriting syndicate led by CIBC World Markets Inc., Merrill Lynch Canada
Inc. and Nesbitt Burns Inc. and in the United States by an underwriting
syndicate led by Goldman, Sachs & Co. and Merrill Lynch & Co.
Magna intends to use the net proceeds from this offering to replenish
cash resources used to fund the Company's U.S. $250 million equity
subscription in MI Venture Inc. (``Ventures''), its non-automotive group, to
further the Company's global business strategy through acquisitions,
investment in new product and process technologies and investment in fixed
assets, and as for general corporate purposes.
The Company also announced that it has completed the previously announced
acquisition by Ventures of Gulfstream Park Racetrack (including approximately
255 acres of related real estate) in Florida from Gulfstream Holdings Inc. of
Illinois, a subsidiary of Orient Corporation and Higashi Nihon House Company
of Japan for U.S. $87 million (net of cash). Gulfstream Park is considered to
be one of the premier racetracks in the United States. The acquisition was
funded from Magna's equity investment in Ventures.
As previously announced, the spin-off of Ventures is expected to occur on
December 15, 1999, the Company's next dividend payment date, subject to
regulatory consents and approvals.
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, South America and Asia. 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 and navigation
systems; 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 54,000 employees in 164 manufacturing operations and 30
product development and engineering centres in 19 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.