VAN BUREN TOWNSHIP — Visteon Corp. (NYSE: VC), the Van Buren Township auto supplier, said Tuesday it had completed the sale of its 70 percent ownership in Halla Visteon Climate Control Corp. to Hahn & Co., the Seoul, South Korea-based private equity firm.
The purchase price was $3.6 billion, or 52,000 South Korean won (about $51) per share.
Visteon also announced it will commence a shareholder capital return program in the second quarter of this year.
Visteon said the sale, announced in December, makes it “a technology-focused, pure-play supplier of automotive cockpit electronics and connected car solutions – one of the world’s leading providers of vehicle information and controls, audio and infotainment, and domain controllers.”
Visteon board chairman Francis Scricco said the company is now “focused and well-positioned to support our customers in the new era of the connected vehicle.”
Visteon said it expects to return between $2.5 billion and $2.75 billion of cash to shareholders over the next 12 months in a series of buybacks and special distributions. The first action is expected to involve a $500 million buyback in the form of an accelerated share repurchase program to be executed as soon as possible and completed by Dec. 31.
After completing the capital return program, Visteon expects to be well-capitalized and well-positioned for both organic growth and acquisitions.
More at www.visteon.com.