Visteon to sell stake in Chinese JV for $1.25B
Visteon is selling its stake in a Chinese joint venture for $1.25 billion.
The auto parts supplier says it will apply proceeds from the sale of its 50 percent stake in Yanfeng Visteon Automotive Trim Systems on a $1.2 billion share buyback program that runs through December 2015. Visteon is selling its stake in Yangfeng to Huayu Automotive Systems Co. Ltd.
Visteon Corp. says it expects to receive about $1.1 billion of the cash proceeds before Dec. 31.
The Van Buren Township, Mich., company also will pay about $70 million to gain control of the majority of Yanfeng Visteon Automotive Electronics Co. Ltd. from Huayu.
Visteon earned $65 million in the second quarter on $1.89 billion in revenue.