Magna announces preliminary results of substantial issuer bid

    AURORA, ON, Sept. 21 /CNW/ - Magna International Inc. (TSX: MG.A;
NYSE:   MGA) today announced the preliminary results of its offer to purchase up
to U.S.$1,536,600,000 in value of its Class A Subordinate Voting Shares, which
expired at 5:00 p.m. (Toronto time) on September 20, 2007.
    Magna has taken up and will purchase for cancellation all the Class A
Subordinate Voting Shares validly tendered pursuant to the offer (11,908,421
shares), at a purchase price of U.S.$91.50 per Class A Subordinate Voting
Share. These shares represent approximately 9.2% of Magna's outstanding Class
A Subordinate Voting Shares as of September 20, 2007.
    Magna and Computershare (the depositary under the offer) expect the final
determination of the number of Class A Subordinate Voting Shares to be
purchased for cancellation to be made on or before September 25, 2007. Payment
for the Class A Subordinate Voting Shares purchased pursuant to the offer will
be made on September 25, 2007. The purchase will be funded from the proceeds
of the treasury issuance of 20,000,000 Class A Subordinate Voting Shares
pursuant to the plan of arrangement involving Russian Machines, which was
completed on September 20, 2007.
    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; and
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. 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 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.

For further information:

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

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