Magna has issued a statement saying that it looks forward to working with GM, the German governments and other stakeholders as it seeks to ‘turn our concept into a reality’.
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The firm will now embark on a due diligence process.
Frank Stronach, Chairman of Magna, stated: “While the recent negotiations have been intense and difficult at times, I believe we have achieved a constructive solution that represents a ‘win-win’ for all stakeholders and will position Opel to compete and succeed.
“We are thankful for the dedication of all interested parties and look forward to continuing to work with General Motors, the German governments and other stakeholders to turn our concept into a reality in the next phase of the process, as the parties work toward definitive agreements.”
The statement also said that there is ‘no assurance that any transaction will result from Magna’s current involvement’.
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By GlobalDataMagna signed a joint memorandum of understanding (MoU) with GM late last week.
Following the signing of the MoU, the assets and shares of GM Europe will be placed in trust to ring-fence the company’s assets from the US Chapter 11 process.
The company will also immediately receive the EUR1.5bn of credit guarantees that were being offered by the German government.
The original terms from Magna were EUR700m for a 55% stake in Opel/Vauxhall, a portion of which was due to be guaranteed by the German government. This would have seen the new shareholding structure in Opel/Vauxhall as follows: 35% owned by GM; 35% owned by Russian state bank Sberbank, Magna’s investment partners in the bid; 20% owned by Magna and the remaining 10% allocated to Opel’s partners.
However, it has yet to be confirmed whether this proposed structure is the one that will be adopted by the company as it moves forward under Magna’s management leadership.
Magna also has said it will provide Opel/Vauxhall with immediate cash facility of EUR300m to ensure the company has sufficient short-term liquidity.
