Linamar Corp., a Canadian auto-parts maker, offered to buy out remaining shareholders in its Hungarian unit for an estimated Ft 10.7 billion ($55.6 million).
The Canadian company is offering Ft 3,003 for each share of Linamar Hungary Nyrt, according to a statement to the Budapest Stock Exchange (BÉT) today. Linamar Corp. currently holds 58.6% of its Hungarian unit and the public offer would be in cash. Linamar Hungary, based in Orosháza, Hungary, and formerly called Mezőgép Rt., assembles automotive components and parts and manufactures agricultural harvesting equipment.
Linamar employs about 11,000 people in the US, Mexico, Germany, China, Korea and Japan. The company had sales of $2.2 billion in 2005. The Canadian company wants to delist the Hungarian unit's shares and focus on its growth potential in Europe, using Hungary as a base, the newspaper Napi Gazdaság reported today. (Bloomberg)