Magna announces intention to conduct normal course issuer bid following plan of arrangement

    AURORA, ON, Aug. 21 /CNW/ - Magna International Inc. (TSX: MG.A, MG.B;
NYSE:   MGA) today announced that, subject to regulatory approval and completion
of its previously announced plan of arrangement involving Russian Machines and
certain other parties, it intends to commence a normal course issuer bid
through the facilities of the Toronto Stock Exchange ("TSX") and the New York
Stock Exchange ("NYSE"), to purchase for cancellation Class A Subordinate
Voting Shares.
    The normal course issuer bid would commence no earlier than ten business
days after the expiry of the substantial issuer bid by way of "modified Dutch
auction" which Magna launched on August 13, 2007 to offset potential equity
dilution from the plan of arrangement. The maximum number of Class A
Subordinate Voting Shares to be purchased in the normal course issuer bid will
be determined at the time the bid is commenced after taking into account the
number of shares purchased under the currently outstanding substantial issuer
bid, but will not exceed the maximum number permitted by the rules of the TSX,
being the greater of 10% of Magna's public float or 5% of its issued and
outstanding Class A Subordinate Voting Shares, in each case, as of the date
the normal course bid is accepted by the TSX. No Class B Shares will be
purchased in the normal course issuer bid. All purchases of Class A
Subordinate Voting Shares will be made at the market price at the time of
purchase in accordance with the applicable requirements of the TSX and Rule
10b-18 under the U.S. Securities Exchange Act of 1934.
    Notice of the normal course issuer bid will be subject to acceptance by
the TSX and the bid will be conducted in accordance with the requirements
ordinarily applicable to normal course issuer bids conducted through the
facilities of the TSX and NYSE, including Rule 10b-18 under the U.S.
Securities Exchange Act of 1934.

    We are the most diversified automotive supplier in the world. We design,
develop and manufacture automotive systems, assemblies, modules and
components, and engineer and assemble complete vehicles, primarily for sale to
original equipment manufacturers of cars and light trucks in North America,
Europe, Asia, South America and Africa. Our capabilities include the design,
engineering, testing and manufacture of automotive interior systems; seating
systems; closure systems; metal body and chassis systems; vision systems;
electronic systems; exterior systems; powertrain systems; roof systems; as
well as complete vehicle engineering and assembly.
    We have approximately 83,000 employees in 229 manufacturing operations
and 62 product development and engineering centres in 23 countries.

    This press release may contain statements that, to the extent that they
are not recitations of historical fact, constitute "forward-looking
statements" within the meaning of applicable securities legislation.
Forward-looking statements may include financial and other projections, as
well as statements regarding our future plans, objectives or economic
performance, or the assumptions underlying any of the foregoing. We use words
such as "may", "would", "could", "will", "likely", "expect", "anticipate",
"believe", "intend", "plan", "forecast", "project", "estimate" and similar
expressions to identify forward-looking statements. Any such forward-looking
statements are based on assumptions and analyses made by us in light of our
experience and our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe are
appropriate in the circumstances. However, whether actual results and
developments will conform with our expectations and predictions is subject to
a number of risks, assumptions and uncertainties. These risks, assumptions and
uncertainties include, without limitation, those related to the strategic
alliance with Russian Machines, including: the risk that the benefits, growth
prospects and strategic objectives expected to be realized from the investment
by, and strategic alliance with, Russian Machines may not be fully realized,
realized at all or may take longer to realize than expected; we will be
governed by a board of directors on which the Stronach Trust and Russian
Machines each, indirectly, have the right to designate an equal number of
nominees, in addition to the current co-chief executive officers, with the
result that we may be considered to be effectively controlled, indirectly, by
the Stronach Trust and Russian Machines for so long as the governance
arrangements remain in place between them; our Russian strategy involves
making investments and carrying on business and operations in Russia, which
will expose us to the political, economic and regulatory risks and
uncertainties of that country; the possibility that Russian Machines may
exercise its right to withdraw its investment in Newco and Newco II and exit
from the governance arrangements in connection with the Arrangement at any
time after two years; the possibility that the Stronach Trust may exercise its
right to require Russian Machines to withdraw its investment in Newco and
Newco II and exit from such arrangements at any time after three years; the
possibility that Russian Machines' lender may require Russian Machines to
withdraw its investment in Newco and Newco II and exit from such arrangements
at any time if such lender is entitled to realize on its loan to Russian
Machines; the conditions precedent to completion of the Arrangement may not be
satisfied or, if satisfied, the timing of such satisfaction may be delayed;
and the occurrence of any event, change or other circumstances that could give
rise to the termination of the Transaction Agreement, the delay of the
completion of the Arrangement or failure to complete the Arrangement for any
other reason. In addition to the risks, assumptions and uncertainties related
to the proposed strategic alliance, there are additional risks and
uncertainties relating generally to Magna and its business and affairs,
including the impact of: declining production volumes and changes in consumer
demand for vehicles; a reduction in the production volumes of certain
vehicles, such as certain light trucks; the termination or non-renewal by our
customers of any material contracts; our ability to offset increases in the
cost of commodities, such as steel and resins, as well as energy prices;
fluctuations in relative currency values; our ability to offset price
concessions demanded by our customers; our dependence on outsourcing by our
customers; our ability to compete with suppliers with operations in low cost
countries; changes in our mix of earnings between jurisdictions with lower tax
rates and those with higher tax rates, as well as our ability to fully benefit
tax losses; other potential tax exposures; the financial distress of some of
our suppliers and customers; the inability of our customers to meet their
financial obligations to us; our ability to fully recover pre-production
expenses; warranty and recall costs; product liability claims in excess of our
insurance coverage; expenses related to the restructuring and rationalization
of some of our operations; impairment charges; our ability to successfully
identify, complete and integrate acquisitions; risks associated with new
program launches; legal claims against us; risks of conducting business in
foreign countries; unionization activities at our facilities; work stoppages
and labour relations disputes; changes in laws and governmental regulations;
costs associated with compliance with environmental laws and regulations;
potential conflicts of interest involving our controlling shareholder, the
Stronach Trust; and other factors set out in our Annual Information Form filed
with securities commissions in Canada and our annual report on Form 40-F filed
with the United States Securities and Exchange Commission, and subsequent
filings. In evaluating forward-looking statements, readers should specifically
consider the various factors which could cause actual events or results to
differ materially from those indicated by such forward-looking statements.
Unless otherwise required by applicable securities laws, we do not intend, nor
do we undertake any obligation, to update or revise any forward-looking
statements to reflect subsequent information, events, results or circumstances
or otherwise.

    This release is for informational purposes only and is not an offer to
purchase or a solicitation of an offer to purchase Magna Class A Subordinate
Voting Shares, nor is it an offer or solicitation of an offer to buy or sell
any other securities of Magna. The substantial issuer bid referred to above is
made solely by means of the Offer to Purchase and the related Letter of
Transmittal and Notice of Guaranteed Delivery which have been delivered to

For further information:

For further information: Vincent J. Galifi, Executive Vice-President and
Chief Financial Officer at (905) 726-7100

Organization Profile

Magna International Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890