Magna International Inc. is separating its non-automotive businesses from its automotive business, and has transferred its North American and European non-automotive assets to its wholly owned subsidiary, MI Entertainment Corp.
MI Entertainment has filed a preliminary non-offering prospectus dated November 8, 1999 with the securities regulatory authorities in the provinces of British Columbia, Alberta, Saskatchewan, Ontario, Nova Scotia, Newfoundland and Quebec for the purpose of becoming a reporting issuer in those provinces. MI Entertainment has also filed a registration statement with the U.S.
Securities and Exchange Commission. It is intended that Magna will distribute shares of Class A Subordinate Voting Stock of MI Entertainment representing approximately 20% (on a fully diluted basis) of the total equity of MI Entertainment as a dividend-in-kind to Magna shareholders.
Magna is relying on its internal legal advisers, Brian Colburn and Bassem Shakeel, and Osler, Hoskin & Harcourt LLP in Canada and Sidley & Austin in the United States. The Oslers team consists of partners Jean Fraser and Robert Lando and associate Sandra Adams. Monica Biringer is providing tax advice. The Sidley & Austin team consists of partner Scott Freeman and associate Bola Oloko.