VAN BUREN TOWNSHIP, Michigan – Visteon Corporation completed the sale of its 50 percent ownership interest in its Chinese joint venture Yanfeng Visteon Automotive Trim Systems Co., Ltd. (YFV) to Huayu Automotive Systems Co., Ltd. (HASCO), in accordance with their previously announced agreement, according to the company release on December 19.
Visteon expected to receive more than $1 billion in total after-tax proceeds as a result of the series of transactions. Visteon had received approximately $840 million, after the provision of certain local taxes, for its stake, and expected to receive an additional after-tax distribution of approximately $65 million prior to the end of 2013.
Additionally, Visteon expected to receive approximately $116 million in additional after-tax proceeds in 2014 and 2015 as a result of related transactions. These proceeds did not include an $86 million payment to gain consolidation of Yanfeng Visteon Electronics.
The sale of the YFV stake is the largest part of a series of transactions that also includes the sale of certain other interiors joint ventures and the acquisition by Visteon of a controlling interest in Yanfeng Visteon Automotive Electronics Co., Ltd. (YFVE), which was completed in November 2013.
“We are pleased to have completed this transaction, which supports our focus on our core climate and electronics businesses and allows us to continue to return value to our shareholders through the authorized $1 billion share repurchase program,” said Timothy D. Leuliette, president and CEO of Visteon. “We look forward to continuing our strong relationship with HASCO in the rapidly growing vehicle cockpit electronics market.”
Advising Visteon on the transaction were Rothschild Inc.; Skadden, Arps, Slate, Meagher & Flom LLP; and Goldman Sachs Co.