Frank Stronach will get to jump into the electric vehicle business after all.
After a series of protests and court hearings, an epochal change occurred at Canadian supplier Magna last week: Stronach gave up voting control of the company he founded.
In return, Stronach's trust receives a fat payout of about $976 million (U.S.) and effective control of an electric-vehicle spinoff.
Stronach, 78, had controlled Magna through a special class of super-voting shares, which were converted into common stock. The move was proposed as a means of increasing the value of common stock, although dissident shareholders complained that the payment to Stronach was excessive.
But the Ontario Divisional Court last week rejected an appeal of an earlier decision allowing the transaction. Magna completed the deal soon after the decision.
Stronach remains chairman of Magna's board.
The new venture will absorb Magna's E-Car Systems, which is doing integration work for a Ford electric vehicle. Magna has said the new unit will develop battery packs and other vehicle electrification technology, as well as "electric vehicles of any type."