Tesma Shareholders Approve Plan by Magna to Take Unit Private - aftermarketNews

Tesma Shareholders Approve Plan by Magna to Take Unit Private

Shareholders of auto parts producer Tesma International Inc. approved a plan Tuesday by its parent Magna International to take the engine and transmission maker private. At a special meeting, shareholders holding Tesma's class-A subordinate voting shares voted 71 percent to back the privatization move. In addition, more than 60 percent of the votes cast by minority holders, excluding Magna and its related parties, backed the plan. For the deal to proceed, it had to be accepted by two-thirds of shareholders, including a majority of non-Magna shareholders.

From Canadian Press

AURORA, Ontario — Shareholders of auto parts producer Tesma International Inc. approved a plan Tuesday by its parent Magna International to take the engine and transmission maker private.

At a special meeting, shareholders holding Tesma’s class-A subordinate voting shares voted 71 percent to back the privatization move. In addition, more than 60 percent of the votes cast by minority holders, excluding Magna and its related parties, backed the plan. For the deal to proceed, it had to be accepted by two-thirds of shareholders, including a majority of non-Magna shareholders.

The privatization transaction for the 5,700-worker Magna subsidiary is expected to become effective Feb. 6, subject to final court approval.

Tesma’s chief financial officer, Tony Dobranowski, said there are no imminent changes expected for Tesma’s management structure, including his own position and the chairman and CEO spots held by Manfred Gingl. Gingl is also executive vice chairman and a director of Magna.

Under the going-private plan presented last October, Magna is buying out other stockholders in Tesma, which it spun off as a separate company in 1995, offering 0.44 of a Magna share for each share of Tesma.

Instead of Magna stock, holders of Tesma shares can opt for equivalent cash, up to a total cash component of $350 million.

Tesma has nearly 18.3 million class A subordinate voting shares with a current stock-market value of about $750 million. There are 14.2 million class B shares which each carry 10 votes, all owned by Magna.

Tesma’s board announced late last year that a dividend of 24 cents per share – up from 18 cents in the previous quarter – will be paid Feb. 15 to shareholders of record on Feb. 3.

Magna also proposes to consolidate its Decoma International Inc. body-part subsidiary and Intier Automotive Inc. vehicle-interior spin-off in separate bids. The three privatization offers are valued at a total of about $1.3 billion.

Magna, based in Aurora, north of Toronto, says it will be able to respond more efficiently as a larger company – reversing a longtime contention that smaller publicly traded subsidiaries provided essential flexibility.

Shares in Tesma gained 39 cents to close at $41.45 in Tuesday trading on the Toronto Stock Exchange. Magna’s class-A shares rose 21 cents to close at $94.62.

Copyright 2005 The Canadian Press, 2005. All Rights Reserved.

_______________________________________

Click here to view the rest of today’s headlines.

You May Also Like

GSP Announces June CV Axle Part Numbers

GSP released 76 new CV axle part numbers this month.

GSP-Announces-June-CV-Axle-Part-Numbers

GSP North America announced the release of 76 new CV axles in June.

GSP said its CV Axle design integrates premium-grade neoprene boots, to ensure optimal fit, form, and functionality. Each CV shaft is "subjected to rigorous quality control and testing, guaranteeing prolonged, reliable performance," the company added.

Lucas Oil Facilities Recertified for ISO 9001:2015

The Quality Management Systems certification was conducted by PRI Registrar Performance Review Institute and included both production facilities in Corydon.

Lucas Oil Certification
WAI Releases 116 New Part Numbers

The new part numbers include starters, alternators, wiper motors, sensors, and transfer case motors.

WAI Announces 116 New Part Numbers
Standard Motor Products’ VVT Program Expands

SMP said the program offers more than 600 part numbers for import and domestic vehicles, with new numbers added each month.

Standard Motor Products’ VVT Program Expands
GKN Reduces Total CO2e Emissions by 10.5%

GKN said its sustainability strategy is based around four strategic pillars, as it aims for its emissions reduction target to be net-zero across its value chain by 2045.

GKN reduces direct CO2e emissions by 10.5% in 2023

Other Posts

Dana Expands Line of Spicer ReadyPack Kits

Dana added new part numbers to its line of Spicer ReadyPack preassembled kits for commercial-vehicle driveshafts, coupling shafts and interaxle shafts.

Dana Expands Line of Spicer ReadyPack Kits
Bendix Marks One Year of Accident-Free Operations

Five hundred people work at the company’s Huntington, Indiana, campus, where 365 days have gone by without a recordable injury, according to Bendix.

Bendix Marks One Year of Accident-Free Operations
Bosch Releases 87 New Part Numbers in June

Bosch’s new part numbers cover 318 million vehicles in operation across North America.

Schaeffler Showcases Hydrogen Electrolyzers and Fuel Cells

Schaeffler also is demonstrating its progress toward the commercialization of green hydrogen, at the Hydrogen Americas 2024 Summit and Exhibition in Washington, D.C. 

Schaeffler Showcases Hydrogen Electrolyzers and Fuel Cells