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]

If you liked the article, share on:

Topics: magna, profit

Comments

Recommended

The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 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