Magna International posted a quarterly profit after a year-earlier loss

Article by Christian A., on August 26, 2010

A year ago, Magna International Inc. may have posted a loss but in the past quarter, it boasts to have had a profit that could be attributed to cost cuts and the increase in global vehicle production.

Magna has also signed a deal with founder Frank Stronach's group, whereby Class A subordinate voting shares could decide to junk the dual-class share structure by which Stronach has controlled Magna.

The Stronach Trust has about 66% of Magna's voting rights through 726,829 outstanding Class B shares it indirectly owns. Each Class B share is said to carry 300 votes.

Once the deal is approved, Magna will buy and cancel all the Class B Shares and the Stronach Trust would indirectly get 9 million newly issued Class A Shares and $300 million in cash.

According to Magna's closing price of $62.53 last Wednesday on the New York Stock Exchange, the deal would have a value of $863 million. The deal, which would leave the Stronach Trust with a voting interest of 7.44%, also covers the creation of a joint venture to manufacture electric vehicles.

For the joint venture, Magna would invest $220 million for a 73% interest. For the rest of the stake, the Stronach group would invest $80 million but would have effective control with the right to appoint three of five board members. [via autonews]

Topics: magna, profit

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries