STOCKHOLM, Sweden -- The Autoliv Inc. Group has said it will make a cash offer for all outstanding shares not currently owned by the group in its 51 percent-owned Estonian subsidiary Aktsiaselts Norma (Norma).
Norma is a leading supplier of automotive safety products to the Russian market and an important component supplier to Autoliv.

Over the past weekend, shareholders representing 26.4 percent of the outstanding shares in Norma made irrevocable sales commitments for the planned offer. Total cost for the 49 percent outstanding shares amounts to approximately $50 million. The planned acquisition is expected to have virtually no effect on Autoliv’s earnings per share for 2010.

The offer is contingent upon the Autoliv Group reaching at least 90 percent of all shares in Norma. The offer is made through AS Automotive Holding, a 100 percent-owned subsidiary of Autoliv.

Regarding the tender offer, Autoliv’s President and Chief Executive Officer, Jan Carlson, noted that the deal was mutually beneficial for the two companies.
“Norma is facing certain challenges as vehicle manufacturers require their suppliers to be global," said Carlson. "In addition, car manufacturers want their suppliers to continuously provide them with new technologies. These technologies are very expensive to develop and as a smaller player, Norma has limited resources to do this. At the same time, system suppliers such as Autoliv have a need for efficient and financially solid component manufacturers such as Norma, and Norma could, with the support of Autoliv, take advantage of restructuring opportunities in the automotive component industry. Therefore, expansion in component supply and integration into Autoliv’s pan-European manufacturing and logistics system provides a strong platform for Norma and its employees. In addition, it will be easier to coordinate sales to the Russian plants of our global customers if all Autoliv companies active in this market have the same ownership structure.”