Jeremiah 29:11

Thanks to purnrg for the article.



And the plot thickens. Chrylser - part Russian, German, and Canadian interesting.

Russian billionaire buying Magna stake


Magna International Inc. is making a seismic shift in direction with an investment in the Canadian auto parts giant by Russian billionaire and automotive entrepreneur Oleg Deripaska.

Under the terms of an agreement announced early Thursday, Mr. Deripaska's companies will pay $1.54-billion (U.S.) to acquire 20 million Class A subordinate voting shares of Magna from treasury.

Mr. Stronach described the deal as a win for shareholders, for the company and for its employees. He said this morning that he started investigating the possibility of expanding in Russia about a year ago. "You just can't walk up to somebody and say, will you be my partner," he said in a telephone interview. "I sat down with my guys and I said look, Russia will be a big opportunity, let's see if we can get a strategic partner."

Prior to the announcement, Mr. Stronach shot down rumours that bubbled up Wednesday and have been floating around for months that he was preparing to sell the whole company to Russian interests.

"There would never be a sale," he said Wednesday night.

He said he is concerned about the North American-based auto makers and their continued decline in market share.

The three major North American auto makers, which are among Magna's customers, are eliminating tens of thousands of jobs in Canada, the United States and Mexico and shutting dozens of plants as they adjust to years of declining market share, mainly at the hands of Asia-based auto companies.

"My No. 1 criteria has always been, how can we have jobs, how can we have a healthy company," he said.

Subject to acceptance and approval by the Toronto Stock Exchange, the 20 million shares would be issued for $76.83 apiece, representing the volume-weighted average closing price of Magna's shares on the New York Stock Exchange over the 20 trading days ended April 20, 2007, the last trading day prior to the receipt of investment proposal letter from the Russian businessman.

In addition, subject to the approval of a "majority of the minority" of the holders of Class B shares, Magna would repurchase all Class B shares not held by the Stronach Trust for cash consideration of $114.00 (Canadian), representing a premium of approximately 30 per cent over the volume-weighted average closing price of Magna's Class A shares on the Toronto Stock Exchange over the 20 trading days ended April 20, 2007.

The addition of Mr. Deripaska as a strategic partner marks a dramatic change for Magna, which is bidding to buy a piece of the Chrysler group in partnership with Canadian-based buyout and investment firm Onex Corp.

The move will increase Magna's financial liquidity as it hooks up with Onex in what is expected to be a holding company that would own Chrysler.

If the Magna proposal is successful, DaimlerChrysler will retain a piece of the No. 3 Detroit-based auto maker it bought in 1998 for $36-billion (U.S.).

Mr. Stronach said earlier Wednesday that Magna's plan for Chrysler involves DaimlerChrysler keeping a stake in the beleaguered division.

The investment by Mr. Deripaska is not related to the Chrysler situation, Mr. Stronach said, noting that Magna has sufficient cash on hand for the Chrysler transaction.

But Magna needs to expand in growing markets such as Russia. "Everybody needs cars there. They've got oil."

Magna already has a contract with AvtoVaz, another Russian auto maker, to redesign a Lada car.

The deal announced Thursday should lead to the construction of several Magna parts plants in Russia and could lead to Magna doing complete vehicle assembly in that market as well, he said.

Magna is one of Canada's most successful companies, having grown from the small firm that Mr. Stron