Magna International last night announced that the plan of arrangement to eliminate its dual-class share structure had been completed.
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Magna’s common shares will commence trading under the symbol ‘MG’ on the Toronto Stock Exchange at the start of trading today, 1 September, 2010.
On Monday an Ontario appeals court rules Magna’s proposed buyout of founder Frank Stronach’s controlling shares could go ahead.
A three-judge panel upheld a lower court decision approving the buyout. The deal won approval from shareholders in July and received Ontario Superior Court approval earlier this month.
But it was appealed by a dissident group of shareholders – including the Canada Pension Plan Investment Board (CPPIB) and the Ontario Teachers’ Pension Plan – who claimed the payoff to Stronach was unreasonable.
Under the deal, the company was to pay the 77 year old entrepreneur US$300m in cash and 9m class A shares in order to give up his controlling class B shares.
Each class B share carries 300 votes, whereas each class A share carries one vote. That has allowed Stronach to control the company while owning just a small part of the equity.
The deal also gives Stronach control of a new electric car parts joint venture with Magna and four years of lucrative consulting fees.
