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Magna and Sberbank offer selected as the preferred solution for Opel
Posted by: gurufocus (IP Logged)
Date: September 10, 2009 02:11PM

Press Release: Magna and Sberbank offer selected as the preferred solution for Opel

AURORA, ON, and MOSCOW, Russia, Sept. 10 /PRNewswire-FirstCall/ - Magna International Inc. ("Magna") (TSX: MG.A, NYSE: MGA) and Savings Bank of the Russian Federation ("Sberbank") (RTS: SBER, MICEX: SBER03) today announced that their joint offer to acquire a 55% interest in Adam Opel GmbH ("Opel") has been selected by both General Motors Company ("GM") and the Opel Trust as the preferred solution to address the future of Opel. Under the offer, the acquired 55% interest in Opel would be owned 50:50 by a Magna/Sberbank consortium ("Consortium") with GM retaining a 35% interest and Opel employees acquiring 10% as part of a new labour framework. The offer contemplates a total equity investment by the Consortium of Euro 500 million over time.

"The Consortium is pleased that its plan for Opel has satisfied General Motors. Together with General Motors, Opel employees and Opel dealers, the Consortium will now work hard to lead Opel into a successful future," said Siegfried Wolf, Magna's Co-Chief Executive Officer and Herman Gref, Chairman of the Board and Chief Executive Officer of Sberbank. "Additionally, the Consortium is grateful to General Motors for the constructive atmosphere during the negotiations and to those parties which have provided their support for the Consortium's business plan, including in particular the German government."

Added Frank Stronach, Magna's Chairman, "Upon the successful completion of the acquisition Magna will put in place appropriate "firewalls" in order to ensure a complete separation between its current auto parts business and Opel so that the confidential and proprietary information of its customers is fully protected."

Completion of the purchase remains subject to finalization of definitive agreements and other conditions, including government-backed financing and regulatory approvals.


Source: PRNewsWire

MGA is in the portfolios of Prem Watsa of Fairfax Financial Holdings, Inc., Richard Pzena of Pzena Investment Management LLC, Prem Watsa of Fairfax Financial Holdings, Inc., Arnold Schneider of Schneider Capital Management, Charles Brandes of Brandes Investment, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.

Stocks Discussed: MGA,
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