Visteon to sell Chinese JV stake to partner for $1.2 billion
(Reuters) - Automotive parts supplier Visteon Corp (VC.N) agreed to sell its 50 percent stake in Chinese joint venture Yanfeng Visteon Automotive Trim Systems Co Ltd and its direct interest in certain YFV affiliates to its partner Huayu Automotive Systems Co Ltd (HASCO) (600741.SS) for about $1.2 billion.
Visteon will separately purchase the majority control of the joint venture's automotive electronics unit, known as Yanfeng Visteon Automotive Electronics Co Ltd, for $68 million, the company said in a statement on Tuesday.
"These transactions support our focus on our core climate and electronics businesses and will bring significant benefits to Visteon, our customers and our shareholders," said Chief Executive Timothy Leuliette.
The company also said it increased its share repurchase program by $875 million to $1 billion.
Visteon was advised by Rothschild Inc, Skadden, Arps, Slate, Meagher & Flom LLP and Goldman Sachs Co.
(The story corrects paragraph 1 to say Visteon is selling its stake in Yanfeng Visteon Trim Systems and its interest in certain YFV affiliates for $1.2 billion. Also corrects U.S. dollar figure to $68 mln from $300 mln in paragraph 2)
(Reporting by Vijay Vishwas in Bangalore, Editing by Thomas Atkins)