Linamar Corp. plans to transform its Hungarian unit into its new European headquarters after, it made a buyout offer for all of the unit's outstanding shares, Linamar CEO Linda Susan Newton said at a press conference in Budapest on Wednesday.
Canada's Linamar Corp. announced a buyout offer for Linamar Hungary on February 26 at a price of Ft 3,003 per share. Linamar Corporation already owns 58.63% of the unit. If Linamar raises its stake to 75% in the buyout offer, it will delist the shares. And if it acquires 90%, it will exercise its right to squeeze out small shareholders, CEO Linda Susan Newton said. She noted that the offer price is 19% over the turnover-weighted 180-day average trading price of the shares, which is the minimum offer allowed under stock exchange rules. The offer price is 37% above the turnover-weighted average price in the last 360 trading days, she said, putting the unit's market capitalization at about Ft 25.8 billion. ($139 million) (Bloomberg)