A company controlled by Russian billionaire Oleg Deripaska is to invest about $1.54bn in Magna International, the Canadian vehicle parts and assembly company that is bidding to buy Chrysler.
Russian Machines, which holds an interest in the Gaz Group – Russia’s second-largest automotive company – will indirectly acquire 20m class A subordinate voting shares of Magna, the Canadian company and Mr Deripaska’s Basic Element group said early on Thursday.
Magna said the investment would accelerate its strategic efforts to capitalise on growth opportunities in Russia and other automotive markets, and align the interests of Russian Machines and the Stronach Trust - Magna’s controlling shareholder - with respect to Magna.
A new Canadian holding company would hold the respective holdings in Magna of the Stronach Trust, Russian Machines, and certain principals who are also members of Magna’s executive management, the Canadian company said. Magna would continue to be a Canadian-based company with shares listed on the Toronto and New York stock exchanges.
Russia is one of the fastest-growing emerging automotive markets in the world, with more than 2m cars sold last year, a 20 per cent year-on-year increase. “Our partnership will accelerate Magna’s growth in Russia and surrounding countries, markets that we see as holding significant opportunities for us,” Frank Stronach, Magna’s chairman said.
Magna is competing against at least two other buyout groups in its bid to buy Chrysler, the lossmaking US unit of DaimlerChrysler. Mr Stronach confirmed on Wednesday that Onex, the Canadian investment company, was its partner in the bid, which is said to be in excess of $4.5 bn.
Magna is a leading parts producer and assembles vehicles on contract for DaimlerChrysler, BMW, and General Motors at a plant in Austria.
Gaz has in the past denied rumours that it was interested in buying Chrysler, where high personnel costs and a product line-up skewed too heavily toward large vehicles have pushed the unit into losses. DaimlerChrysler says it is considering “all options” for the unit, which is cutting capacity and revamping models as part of a turnaround plan aimed at restoring profitability.
Magna is holding its annual general meeting on Thursday. Don Walker and Siegfried Wolf, Magna’s co-chief executive officers, were due to discuss the proposed deal in a conference call at 8:30 a.m. EDT.
Відповіді
2007.05.10 | samopal
А "ГАЗ" купує Chrysler? (/)
A company controlled by Russian billionaire Oleg Deripaska is to invest about $1.54bn in Magna International, the Canadian vehicle parts and assembly company that is bidding to buy Chrysler.Russian Machines, which holds an interest in the Gaz Group – Russia’s second-largest automotive company – will indirectly acquire 20m class A subordinate voting shares of Magna, the Canadian company and Mr Deripaska’s Basic Element group said early on Thursday.
Magna said the investment would accelerate its strategic efforts to capitalise on growth opportunities in Russia and other automotive markets, and align the interests of Russian Machines and the Stronach Trust - Magna’s controlling shareholder - with respect to Magna.
A new Canadian holding company would hold the respective holdings in Magna of the Stronach Trust, Russian Machines, and certain principals who are also members of Magna’s executive management, the Canadian company said. Magna would continue to be a Canadian-based company with shares listed on the Toronto and New York stock exchanges.
Russia is one of the fastest-growing emerging automotive markets in the world, with more than 2m cars sold last year, a 20 per cent year-on-year increase. “Our partnership will accelerate Magna’s growth in Russia and surrounding countries, markets that we see as holding significant opportunities for us,” Frank Stronach, Magna’s chairman said.
Magna is competing against at least two other buyout groups in its bid to buy Chrysler, the lossmaking US unit of DaimlerChrysler. Mr Stronach confirmed on Wednesday that Onex, the Canadian investment company, was its partner in the bid, which is said to be in excess of $4.5 bn.
Magna is a leading parts producer and assembles vehicles on contract for DaimlerChrysler, BMW, and General Motors at a plant in Austria.
Gaz has in the past denied rumours that it was interested in buying Chrysler, where high personnel costs and a product line-up skewed too heavily toward large vehicles have pushed the unit into losses. DaimlerChrysler says it is considering “all options” for the unit, which is cutting capacity and revamping models as part of a turnaround plan aimed at restoring profitability.
Magna is holding its annual general meeting on Thursday. Don Walker and Siegfried Wolf, Magna’s co-chief executive officers, were due to discuss the proposed deal in a conference call at 8:30 a.m. EDT.
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