27.02.2007

Linamar to buy Hungarian shares

Linamar has announced that it has made an offer to purchase all of the outstanding ordinary shares in Linamar Hungary NYRT that it does not already hold, at a price of HUF 3,003 per share ($15.5) in cash.

The public purchase offer has been filed for approval with the Hungarian Financial Supervisory Authority. As soon as the regulatory approval is received, Linamar says that will be in a position to proceed with the offer.

Linamar currently holds 5,030,800 Linamar Hungary shares, representing approximately 58.6 percent of the outstanding equity.

The aggregate consideration payable under the offer for the 41.4 percent holding will be approximately HUF 10,658,247 ($55 million).

Linamar says that it anticipates paying for the shares with cash on hand.

In announcing the offer, Linda Hasenfratz, Linamar's chief executive officer said, "This offer represents an opportunity for Linamar Hungary shareholders to realise liquidity for their shares. Linamar has been a public company in Hungary for 10 years, but we haven't been able to utilise the market as we had originally hoped. This purchase will give Linamar greater flexibility to operate the business without the additional governance and costs associated with being a publicly owned company."