Shareholders of Intier Automotive Inc. voted yesterday to accept an offer by parent company Magna International Inc. to take the auto parts supplier private.
Intier, which makes seating systems and other interior components for most of the world's major auto makers, said 75.04 per cent of class A shareholders voted in favour of the deal, clearing the way for the takeover to close on April 3.
The Intier vote concludes Magna's bid to absorb its three publicly traded auto parts divisions. Decoma International Inc. and Tesma International Inc. shareholders have already voted in favour of privatization.
Magna had spun off the three units at various times since 1995 as part of its strategy to create publicly traded subsidiaries, which it said encourages entrepreneurship among employees.
The auto parts giant announced the privatization of the three units last year, saying the move would end confusion among its customers, make it easier to develop modules that contain components from one or more of its divisions and reduce the costs of building new plants in such emerging markets as China.
Magna said last year it would spend about $1.3-billion on the program, which is intended to simplify its corporate structure.
Decoma makes exterior plastic parts and Tesma, which was the first unit to be partly spun off, designs and develops engine and transmission parts. Reuters