Posts Tagged ‘Magna’

GM Board Recommendation to Sell Majority Stake in Opel/Vauxhall to Magna International/Sberbank

Thursday, September 10th, 2009

Zurich — General Motors today announced that its Board of Directors supports a bid from the consortium of Magna International Inc. and Sberbank to buy a majority stake in its European Opel/Vauxhall operations.

Several key issues will be finalized over the next few weeks to secure the binding agreements, including the written support of the labor unions to support the deal with the necessary cost restructuring for viability and the finalization of a definitive financing package from the German government. The definitive agreements should be ready to sign within a few weeks, with closing to follow within the next few months. Under the deal, Magna/Sberbank will purchase a 55 percent stake in New Opel; GM will hold a 35 percent stake and employees will be provided a 10 percent stake. (more…)

Magna Confirms Offer for Opel

Friday, May 22nd, 2009

Aurora, Canada/PRNewswire/ — Magna International Inc. (TSX: MG.A, NYSE: MGA) today confirmed that, together with Sberbank Rossii (“Sberbank”), it has submitted a non-binding indicative offer for Opel. The offer contemplates a total investment by Magna and Sberbank of Euro 700 million, a portion of which would be guaranteed by the German government. Under the offer, the proposed equity interests in Opel would be: General Motors — 35%; Sberbank — 35%; Magna — 20%; and Opel employees — 10%.

General Motors and the German government are reviewing and considering offers submitted this week and will determine the next steps in the sale process.

There is no assurance that any transaction will result from Magna's current involvement. (more…)