Adient Again Modifies Joint Venture With Yanfeng

Adient Again Modifies Joint Venture With Yanfeng

The changes will restructure existing joint venture relationships.

Adient, a global leader in automotive seating, has entered into an amendment to its previously announced definitive agreement with Yanfeng Automotive Trim Systems Co., Ltd. (Yanfeng) to make certain changes to their existing joint venture relationships. 

As part of the transactions contemplated by the definitive agreement entered into on Jan. 31, 2020, Adient agreed to sell its 30 percent ownership stake in Yanfeng Global Automotive Interior Systems Co., Ltd. (YFAI) to Yanfeng for $379 million. In connection with obtaining certain required regulatory consents, Adient and Yanfeng have agreed to certain modifications to the transactions. The purchase price for the sale by Adient of its 30 percent ownership stake in YFAI will be reduced to $369 million, of which $309 million will be paid at the closing of the agreed transactions and the remaining $60 million will be paid on a deferred basis post-closing. With respect to each YFAI fiscal year ending after the closing, starting with the year ending Dec. 31, 2020, Adient will be paid an earnout in an amount equal to 30 percent of YFAI’s distributable earnings for such year until such time as the $60 million deferred purchase price is fully paid.   

In addition, the board of directors of each of Yanfeng Adient Seating Co., Ltd. (YFAS) and Adient Yanfeng Seating Mechanisms Co., Ltd. (AYM) have approved the distribution of dividends to their respective shareholders in the amount of RMB 1.9 billion and RMB 1.2 billion, respectively. The dividends will be paid to the YFAS and AYM shareholders on or prior to June 30, 2020. Adient Asia Holdings Co., Limited will receive 49.99% of the YFAS dividends and 50% of the AYM dividends.

The transactions agreed on Jan. 31, 2020, as amended on June 24, 2020, except for the dividends which will be paid on or prior to June 30, 2020, are cross-conditioned on each other and closing is subject to regulatory approvals and other customary closing conditions. The transactions are expected to be completed in the fourth quarter of Adient’s current fiscal year.

You May Also Like

Bendix’s Mexico Tech Center Celebrates 5 Years of Growth

It features a larger lab, additional office space, and a state-of-the-art vehicle engineering garage now under construction.

Bendix announced its Tech Center in Monterrey, Mexico, is celebrating its 5th anniversary.

The facility opened in 2018 with 34 employees – 32 of them engineers – in a 7,800-sq.-ft. space. Five years later, the Technical Center that Bendix Commercial Vehicle Systems LLC (Bendix) launched is home to 80 engineers and some three dozen administrative employees in a facility expanded to more than 25,500 square feet, featuring a larger lab, additional office space, and a state-of-the-art vehicle engineering garage now under construction, the company said.

Automotive Sourcing and Procurement in Poland

Interviewee Dariusz Pielach discusses the size and extent of the automotive supply chain in Poland.

Michelin Restructuring Operations in Germany

Michelin said the decision is a result of a lack of competitiveness of its German operations.

Bendix Mfg. Operation in Mexico Certified by IMSS

The certification for Plant 3 recognizes the facility’s support for the health, safety and well-being of its employees.

MAHLE China Wins ESG Performance Award 

MAHLE was awarded the “More Than a Market Awards 2023” in the Large Enterprise Group category.

Other Posts

ADD Group Presenting at Automechanika Shanghai 2023

The main product highlights are the company’s new complete strut assemblies and air shocks for EV applications.

ECARX Starts Mass Production of Antora 1000 Computing Platform

The Lynk & Co. 06 EM-P SUV features a digital cockpit experience powered by the ECARX Antora 1000 computing platform.

Stellantis, CATL Sign MoU for LFP Batteries in Europe

The companies will look to develop technology for Stellantis’ EVs and explore opportunities in the battery value chain.

CATL building
Hesai’s ET25 Wins CES 2024 Innovation Award

Hesai’s ultra-thin, long-range LiDAR, the ET25, has been named a CES 2024 Innovation Awards honoree.