Magna International has won the necessary approvals to sell a 20% stake to Russian billionaire Oleg Deripaska’s Russian Machines for $US1.5bn.
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Russian Machines, the Stronach Trust and other parties to the deal have received final court approval, Magna said in a statement.
Magna said the Toronto Stock Exchange has granted conditional approval for the issue and listing of the 20m Class A shares to be sold to Russian Machines and that the European Commission had granted merger control clearance for the transaction. It expects the deal to close late next month.
On Wednesday, Magna CFO Vince Galifi said the deal would “…accelerate Magna’s efforts to capitalise on the significant growth opportunities in the Russian automotive market and other emerging markets.
“Aligning with a strong and well-established industrial partner in Russia allows Magna to take advantage of these growth opportunities while minimising the risks of investing in start-up operations,” he added.
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By GlobalDataToronto’s Globe and Mail newspaper had reported earlier the deal had faced opposition as holders of about 8m shares of Magna class A stock, equivalent to about 8% of the total, said they had voted against the deal, even after Magna tried to win them over in a series of meetings.
