Visteon Signs Agreement to Sell Shares in Duckyang Joint Venture for $24.1 Million as Step Toward Interiors Divestiture
VAN BUREN TOWNSHIP, Mich., March 19, 2014 /PRNewswire/ -- Visteon Corporation (NYSE: VC) today announced that the company has reached an agreement to sell its 50 percent ownership stake in a Korean automotive interiors joint venture, Duckyang Industry Co., Ltd. (024900:KS), in support of its previously announced intentions to divest its interiors business.
The sale to certain management shareholders of Duckyang and associated parties for the equivalent of about $24.1 million (25.9 billion Korean Won) is expected to be completed in April after closing conditions are met. In addition to the $24.1 million from the share sale, Visteon expects to receive approximately $5.9 million (6.3 billion Korean Won) in dividends.
"We are pleased to have reached this agreement to sell our stake in this non-consolidated interiors joint venture as another step in Visteon's transformation, and in support of our stated goal to exit our interiors business," said Visteon President and CEO Timothy D. Leuliette. "We are working toward the interiors divestiture as part of our commitment to deliver customer and shareholder value by focusing on our core growth climate and electronics businesses."
Based in Ulsan, South Korea, Duckyang manufactures and develops original equipment interior components for vehicles.
Visteon is a leading global automotive supplier delivering value for vehicle manufacturers and shareholders through businesses including Halla Visteon Climate Control Corp., Visteon Electronics and Visteon Interiors. Visteon designs, engineers and manufactures innovative components and systems for virtually every vehicle manufacturer worldwide. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK; Visteon has facilities in 29 countries and employs about 24,000 people. Visteon had sales of $7.4 billion in 2013. Learn more at www.visteon.com.
SOURCE Visteon Corporation