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. Last Updated: 07/27/2016

Magna Shareholders Back Stake Sale

TORONTO -- Shareholders of Magna International, Canada's largest auto-parts maker, approved a $1.5 billion investment that cedes some control of the company to Oleg Deripaska.

The proposal by Magna founder Frank Stronach, intended to boost access to the Russian automotive market, was accepted at a shareholders' vote in Toronto. The percentage voting in favor was not announced.

The decision shifts some control of Magna away from Stronach's family as the company looks to diversify beyond the stagnating U.S. automotive market.

"The issue is where the control lies and what value is transferred back to other shareholders versus the opportunity Deripaska presents," Richard Pzena, chief of Pzena Investment Management, Magna's second-biggest investor, said before the vote.

Under terms of the deal, Deripaska gains 20 million Class A shares of Magna.

The Ontario Teachers' Pension Plan, a Canadian pension fund manager, said it gave Deripaska a disproportionate amount of control compared with his equity in the company.