VIENNA - Magna International Chairman Frank Stronach wants to go public with Magna-Steyr, the European division of Canadian supplier Magna International.
Magna International intends to merge Magna-Steyr with the Tesma group, another Magna subsidiary that is already listed on New York's Nasdaq and the Toronto stock exchange.
Magna expects to complete the merger by January 1. Magna International has scheduled a shareholder meeting to approve the merger on December 6. The new company would be listed as Magna-Steyr.
In the past year, a once-flourishing practice of manufacturers going public to raise capital has virtually ceased as stock valuations fell sharply and investors sought other opportunities. Moody's Investors Service recently issued a report saying the automotive supplier segment faced a declining financial climate.
But Stronach believes North American stock markets will have recovered sufficiently from the September 11 terrorist attacks by early 2002 to proceed with taking the merged company public.
Magna currently plans to apply for listings on Nasdaq and the Toronto exchanges in February. Magna-Steyr may later seek listings on the Frankfurt and Vienna stock exchanges.
Tesma, which is 90 percent owned by Magna group, designs and builds high-tech engines, transmissions and fuel systems.
Tesma has five plants in Europe, 15 in North America and two in South Korea. Its operations are a logical fit with Magna-Steyr because Tesma has parallel products.
The combined revenue of Magna-Steyr and Tesma is $1.6 billion (E1.8 billion).
Siegfried Wolf would be chairman of the combined unit. He is currently president of Magna-Steyr and a vice president of Magna International.
Based in Graz, Austria, Magna-Steyr is active in Europe, Mexico, and the USA. It consists of four divisions:
* Fahrzeugtechnik, which produces cars under contract from other automakers
* Engineering, which develops complete vehicles and automotive components for partners
* Powertrain, which produces transmissions
* Metal Forming, for stamping, pressing and hydroforming components.