Magna International Inc. (TSX: MG, NYSE: MGA) today announced that the Ontario Securities Commission (“OSC”) has issued an issuer bid exemption order (the “August 2015 Order”) permitting us to make private agreement purchases of Magna International Inc.’s (“Magna”) Common Shares from an arm’s length third-party seller. Any purchases of our Common Shares made by way of private agreement under the August 2015 Order will be at a discount to the prevailing market price, may be made in tranches over time, and must otherwise comply with the terms of the August 2015 Order, including that: only one such purchase is permitted per calendar week; and any such purchase must occur prior to the expiry of our Normal Course Issuer Bid (the “Bid”) on November 12, 2015.
Magna was previously granted issuer bid exemption orders (the “Prior Orders”) on November 25, 2014 permitting us to make private agreement purchases from three arm’s length third-party sellers on certain terms and conditions contained in the Prior Orders. The maximum number of Common Shares which may be purchased by way of all such private agreements cannot exceed 13,333,333, being one-third of the total number of Common Shares which may be purchased under the Bid after giving effect to the two-for-one stock split completed by Magna on March 25, 2015 (the “Stock Split”). The maximum number of Common Shares purchased in any weekly tranche by way of private agreement will not exceed 1,000,000. As of today, we have purchased 5,320,000 Common Shares under the Prior Orders after giving effect to the Stock Split.
All Common Shares purchased by way of private agreement made pursuant to the Prior Orders and the August 2015 Order will be included in computing the number of Common Shares purchased under the Bid, and information regarding each purchase, including the number of Common Shares purchased and aggregate price paid, will be available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com following the completion of any such purchase.
Subject to regulatory requirements, the actual number of Common Shares to be purchased under the Bid, whether by way of any such private agreement or otherwise, and the timing of any such purchases will continue to be determined by us having regard to future price movements, our determination that such purchases would be an appropriate use of corporate funds and in the best interests of Magna, and other factors. All purchases will be subject to our normal trading blackouts.
