Magna International said Tuesday it will move ahead with a deal worth nearly $1 billion to have founder Frank Stronach give up control over the auto parts giant.

Dissident shareholders opposed to the plan have notified the Aurora, Ont.-based company that they do not intend further legal appeals, Magna said in a release.

Magna says it plans to implement a deal after the close of markets Tuesday to relieve founder Frank Stronach of control. (Markus Leodolter/Associated Press)

A day earlier, the Ontario Divisional Court upheld a lower-court ruling approving the proposal.

The dissident shareholders included the Canada Pension Plan Investment Board, Ontario Teachers' Pension Plan, OMERS, the Alberta Investment Management Corp. and British Columbia Investment Management Corp.

They had opposed the size of the premium over the present value of the company's shares — about 18-fold — to be paid to the Stronach family trust, and argued it would set a dangerous precedent for similar, future deals in terms of the loss of shareholder value.

The deal provides for Stronach to receive $300 million US in cash, $120 million in consulting fees over the next four years, nine million single-vote shares of Magna and control over a new joint venture focused on electric vehicles.

Shares rise

Magna shares closed up $3.43, or 4.3 per cent, to $83.04 Tuesday on the Toronto Stock Exchange.

Magna said it planned to implement the change after the close of markets Tuesday.

"We are very pleased with the court's decision and that we are finally in a position to close the arrangement, which has received strong support from Magna's shareholders," Magna CFO Vince Galifi said.

"With the transaction completed, we can refocus on pursuing our long-term growth strategy, including further investments in both innovation and emerging markets, in order to continue to serve our customers around the world."