As a further commitment to our decentralized operating philosophy, many years ago Magna adopted a spin-co strategy, whereby certain of our operating groups were spun off as separate public companies.
In 1982, our shareholders approved our "spinco" policy to develop our operating groups into self-sufficient public companies. The objective of this "spinco" policy was to establish one or more operating groups as separate public corporations, or "spincos", while Magna remained as a major shareholder.
We created our first spinco when Tesma completed an initial public offering on July 31, 1995. Decoma subsequently completed its initial public offering on March 2, 1998 and Intier completed its initial public offering on August 9, 2001.
Notwithstanding the benefits derived from our spinco policy, in April 2005, we completed the privatizations of these public subsidiaries. Adapting to changing automotive industry conditions we determined that the privatizations would provide increased strategic flexibility and better position Magna to compete and grow on a global basis. Here are the highlights of the privatizations.
Tesma International Inc. (Press Release - PDF 111 KB)
Shareholder approval on February 1, 2005.
Final court approval on February 3, 2005.
Privatization completed on February 6, 2005.
For purposes of cash elections shareholders received a payment of Cdn$41.5672 per Tesma share.
Tesma shareholders received 0.44 of a Magna Class A Subordinate Voting Share for each Tesma Class A Subordinate Voting Share, in addition to cash for any fractional shares.
Decoma International Inc. (Press Release - PDF 124 KB)
Shareholder approval on February 28, 2005.
Final court approval on March 2, 2005.
Privatization completed on March 6, 2005.
For purposes of cash elections shareholders received a payment of Cdn$12.8279 per Decoma share.
Decoma shareholders received 0.1453 of a Magna Class A Subordinate Voting Share for each Decoma Class A Subordinate Voting Share, in addition to cash for any fractional shares.
Intier Automotive Inc. (Press Release - PDF 175 KB)
Shareholder approval on March 30, 2005.
Final court approval on April 1, 2005.
Privatization completed on April 3, 2005.
For purposes of cash elections shareholders received a payment of Cdn$33.3107 per Intier share.
Intier shareholders received 0.41 of a Magna Class A Subordinate Voting Share for each Intier Class A Subordinate Voting Share, in addition to cash for any fractional shares.
MI Developments Inc. Spin-off (August 2003)
This transaction was effected as a return of capital to our shareholders by way of a distribution of MID shares on September 2, 2003. Magna shareholders of record, as of the close of business on August 29, 2003, received one MID Class A Subordinate Voting Share for every two of Magna's Class A Subordinate Voting Shares held and one MID Class B Share for every two of Magna's Class B Shares held. Cash was paid in lieu of fractional shares.
Please review the Canadian Tax Information for Magna Shareholders (PDF 56 KB) or the U.S. Tax Information for Magna Shareholders (PDF 20 KB) in addition to the following related documents:
Magna Entertainment Corp. Spin-off (March 2000)
Shareholders of record as of the close of business on February 25, 2000 of Magna's Class A Subordinate Voting Shares and Class B Shares to received one-fifth of one share of MEC Class A Subordinate Voting stock in the form of a special stock dividend. Cash was paid in lieu of fractional shares.
In order to determine the fair market value of the special stock dividend to shareholders, Magna used the weighted average trading price of MEC on NASDAQ in the "if as and when issued" market, for the ten consecutive trading days ending March 9th, the day before the distribution. That weighted average price amounted to US$4.98 or Cdn$7.23.
