NOVI, MI — Tower Automotive has sold its 30.76 percent interest back to Yorozu Corp. through a share buy-back transaction on the Tokyo Stock Exchange. Tower received proceeds of $51.7 million from the transaction.
Tower Automotive has been a major shareholder in Yorozu since September 2000, when it purchased 3,650,000 shares. An additional 2,950,400 shares were purchased in February 2001.
The divestiture is part of Tower’s strategy of focusing on core operations and improving liquidity, said Kathleen Ligocki, president and CEO of Tower Automotive.
The company said it plans to continue to strengthen its presence in Asia, and plans to expand its technical center in Yokohama. Tower Automotive also owns 100 percent of Seojin Industrial Company in Korea, and operates two joint ventures in China — Tower Golden Ring in Changchun and Tower Automotive WuHu Company in WuHu.