AURORA, ON, Nov. 9 /PRNewswire/ - Magna International Inc.
(TSX: MG, NYSE: MGA) today announced that the Toronto Stock
Exchange ("TSX") had accepted its Notice of Intention to Make a
Normal Course Issuer Bid (the "Notice"). Pursuant to the Notice, we
may purchase up to 4,000,000 Magna Common Shares (the "Bid")
(adjusted to 8,000,000 Magna Common
Shares on a post stock split basis), representing 3.3% of our
issued and outstanding Common Shares. The primary purposes of the
Bid are purchases for cancellation to offset dilution resulting
from the exercise of stock options, as well as purchases to fund
our restricted stock unit program and/or our obligations to our
deferred profit sharing plans. As of November 4, 2010, we had 121,175,733 issued and
outstanding Common Shares.
The Bid will commence on November 11, 2010 and will terminate no later
than November 10, 2011. All purchases
of Common Shares will be made at the market price at the time of
purchase in accordance with the rules and policies of the TSX.
Purchases may also be made on the New
York Stock Exchange ("NYSE") in compliance with Rule 10b-18
under the U.S. Securities Exchange Act of 1934. The rules and
policies of the TSX contain restrictions on the number of shares
that can be purchased under the Bid, based on the average daily
trading volumes of the Common Shares on the TSX. Similarly, the
safe harbor conditions of Rule 10b-18 impose certain limitations on
the number of shares that can be purchased on the NYSE per day. As
a result of such restrictions, subject to certain exceptions for
block purchases, the maximum number of shares which can be
purchased per day during the Bid on the TSX is 93,812. Subject to
certain exceptions for block purchases, the maximum number of
shares which can be purchased per day on the NYSE will be 25% of
the average daily trading volume for the four calendar weeks
preceding the date of purchase. Subject to regulatory requirements,
the actual number of Common Shares and the timing of purchases, if
any, will be determined by us having regard to future price
movements and other factors.
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
structural systems; vision systems; electronic systems; exterior
systems; powertrain systems; roof systems; hybrid and electric
vehicles/systems; as well as complete vehicle engineering and
assembly.
Magna has over 90,000 employees in 242
manufacturing operations and 76 product development, engineering
and sales centers in 25 countries.
FORWARD-LOOKING STATEMENTS
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, including, but not limited to,
future purchases of our Common Shares under the Normal Course
Issuer Bid and any resulting offsetting of dilution.
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, the impact of: the
potential for a slower than anticipated economic recovery or a
deterioration of economic conditions; production volumes and sales
levels which are below forecast levels; our dependence on
outsourcing by our customers; the termination or non renewal by our
customers of any material contracts; our ability to identify and
successfully exploit shifts in technology; restructuring,
downsizing and/or other significant non-recurring costs; impairment
charges; our ability to successfully grow our sales to
non-traditional customers; unfavourable product or customer mix;
risks of conducting business in foreign countries, including
China, India, Brazil, Russia and other developing markets; our
ability to quickly shift our manufacturing footprint to take
advantage of lower cost manufacturing opportunities; disruptions in
the capital and credit markets; fluctuations in relative currency
values; our ability to successfully identify, complete and
integrate acquisitions; pricing pressures, including our ability to
offset price concessions demanded by our customers; warranty and
recall costs; the financial condition and credit worthiness of some
of our OEM customers, including the potential that such customers
may not make, or may seek to delay or reduce, payments owed to us;
the financial condition of some of our suppliers and the risk of
their insolvency, bankruptcy or financial restructuring; the highly
competitive nature of the automotive parts supply business; product
liability claims in excess of our insurance coverage; 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; legal claims
against us; work stoppages and labour relations disputes; changes
in laws and governmental regulations; costs associated with
compliance with environmental laws and regulations; risks
associated with our partnership with the Stronach Trust to continue
to pursue opportunities in the vehicle electrification business;
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,
including, without limitation, factors set out in our Management
Information Circular/Proxy Statement, dated May 31, 2010 under the heading "Risks Relating to
the Vehicle Electrification Joint Venture". 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.
SOURCE Magna International Inc.
Copyright v. 9 PR Newswire