Auto parts maker aims to become a global leader in aluminum components.
October 15, 2015
by CANADIAN PRESS
GUELPH, Ont. — One of Canada’s largest autoparts companies is making a play for French counterpart Montupet SA in a friendly takeover offer valued at C$1.16 billion.
Linamar Corp. of Guelph, Ont. says the acquisition would be a significant step in its strategy of becoming a global leader in making aluminum components for the automotive sector.
Montupet designs and manufactures complex aluminum castings, with a presence in several European countries, North America and Asia.
Linamar is a diversified manufacture of precision metal components and systems, with particular expertise in aluminum components used in engines, transmissions and other sub-systems.
It is offering 71.53 euros in cash for each Montupet share, or about C$107.30, which is 15.5% above the pre-announcement market price.
Linamar would also assume Montupet debt valued at 63 million euros or $94.5 million.
The Montupet board of directors and shareholders who own 36.6% of its shares are supporting the bid, which requires regulatory approvals and will be open to other shareholders until early December.
© 2015 The Canadian Press